State companies allowed to deposit up to 50% of surplus funds in private banks

  • Senior Correspondent, bdnews24.com
    Published: 2020-01-20 17:09:35 BdST

bdnews24

The government has allowed state-owned companies to park up to 50 percent of their surplus funds in private banks and non-bank financial institutions.

The finance ministry’s Financial Institutions Division issued a notice on Monday, saying the decision will help commercial banks lower lending rates to a single digit

State-owned companies will receive a maximum interest rate of 6 percent on deposits, according to the notice. On the other hand, the companies will receive 5.5 percent interest rate on deposits in state-owned banks.

The government made the decision as it aims to boost private investment and keep up the pace of economic growth, according to the statement.