Bangladesh government forms panel to rein in bank lending rates

  • Abdur Rahim Harmachi, bdnews24.com
    Published: 2019-12-02 01:31:45 BdST

bdnews24

The government has formed a panel headed by SM Moniruzzaman, a deputy governor of the Bangladesh Bank, with the task of bringing interest rates down to a single digit

Governor Fazle Kabir announced the seven-strong committee on Sunday evening, central bank spokesman Serajul Islam told bdnews24.com.

The other members of the committee are Agrani Bank Chairman Zaid Bakht, Standard Bank Chairman Kazi Akram Uddin Ahmed, Rupali Bank Managing Director Obayed Ullah Al Masud, Association of Bankers, Bangladesh or ABB Chairman and Mutual Trust Bank’s MD Syed Mahbubur Rahman, IFIC Bank MD Shah Alam Sarwar and NRB Bank MD Mehmood Husain.

Serajul said the panel has the authority to co-opt more members if need be.

Finance Minister AHM Mustafa Kamal revealed the plan to form the committee earlier in the day.

The committee will submit a strategy on reducing the interest rate to the governor of the central bank within a week, he said.

Business leaders have long called for lending and deposit interest rates to be brought down to 9 percent and 6 percent respectively.

Prime Minister Sheikh Hasina, too, has called for lending rates to be slashed on many occasions to little avail.