Suddenly there was a tense of money in the bank's bank sector. Some banks are not giving new loans to traders. Almost all the banks have increased interest rates. Even some bank cases are being withdrawn by the customers.
Traders said, in a couple of months earlier, the banks were lending to big customers 8-9 percent interest, which now has to pay 2-3 percent more. Likewise, the interest rate of consumer and home loan increased.
Bankers suddenly saw some reasons behind this crisis. One of these is reducing the amount of debt disbursal against the bank's deposits. Apart from this, due to low interest rates, the deposit of the bank decreased, the money was withdrawn from the bank and the recent scam of a private bank has indirectly implicated this crisis.
Bangladesh Industrial and Commercial Association Federation (FBCCI) president Shafiul Islam Mohiuddin said, "It is very risky to increase interest rates. We are seeing it with concern. "He said," We want the interest rate of the loan to be moderate. Otherwise the cost of business will increase and the prices of the products will increase. It will have negative impact on inflation.
Interest rates again in two figures
Last year for the country's businessmen was good. At the time, the interest rate of the bank's loan was down to below 8 percent for the larger customers. Likewise, the rate of interest of personal, home, car, and occupational loans declined. As with the central bank, the average rate of interest for loans up to 12.14 percent of the country's banks was 12-14 percent. In 2010, it dropped below 10 percent. Last December, the average interest rate on loans rose to 9.35 percent.
Some big business groups have been approached by the first light to know how much of the traders are getting loans now. They all claim that the banks are seeking interest rates more than ever. Bengal Group Vice Chairman Md. Jasim Uddin said in the first light, 'So much so that we could get between 8 and 8 percent of the long-term loan. Now it is above 10 percent. "He said the current capital interest is a bit more, he said.
The directors and traders of a bank requested in the first light that if the 20 banks are in the market, then the interest rate of the deposit will increase. Banks are now trying to collect deposits of more than Tk 20 billion from the market. If you take 9 percent interest on fixed deposits, it is not possible for anyone to lend less than 14 percent.
Abdus Salam Murshedi, president of the Bangladesh Exporters Association (EAB) and Premier Bank director, said in the first light, while keeping the proportion of loans and deposits, the banks are already giving loans sanctioned, but slow progress in new loans.
Ranjha Tanal Central Bank
In 2010, the banks distributed aggressive loans. On the contrary the deposit collection decreases. According to the central bank, in the first 11 months of 017 January (January to November), 1 lakh 11 thousand 579 crore was disbursed. However, during the period, deposits in banks increased by 72.531 crore That is, more than one and a half times more than the deposit has been disbursed. As a result, there was some pressure on liquidity. Meanwhile, banks are constantly buying dollars from the central bank to meet import demand. The price of the dollar is rising. Central Bank has lifted around 10 billion taka from the market by selling around $ 120 million in the current fiscal year. As a result, liquidity constraints are becoming more intense.
Bangladesh Bank has reduced the credit limit by reducing the limit of loan targets Bangladesh Bank has given strict instructions to the banks to implement the new limit. Bankers say that due to the new guidelines of the central bank, many banks have lost the ability to repay new loans. Many are also bringing back loans given to the scheduled debt limit. Everybody has stressed on collecting deposits while following the instructions of the Bangladesh Bank. New deposits in the market are low, so there is a lot of interest transfer from one bank to another bank. That is why interest rates for both deposits and loans are rising.
Import is more than exports, loans are more than deposits. As a result, there is no adjustment in liquidity management of banks.
Association of Bankers Bangladesh (ABB) Chairman and Managing Director of Dhaka Bank Syed Mahbubur Rahman said in the first light, the amount of deposits in the banks is more than the loan. The liquidity crisis has started. In such circumstances, interest rates are rising to generate liquidity. He thinks the liquidity situation will take some time to normalize for this.
World Bank's chief economist Zahid Hossain said in the first light, "In the past year, the growth of the deposits was less than the bank's credit. As a result, there is no additional liquidity in the bank anymore. Again, the debt situation did not improve due to non-recovery of loans. Then there is more interest in the savings table because money is going there. As a result, banks are now trying to raise the interest rate by increasing interest rates, which will increase interest rates on loans.
In the overall situation, experts say that if the flow of credit goes down, trade barriers, investment and growth can be hindered. And if the interest rates increase, the cost of the business will also increase. These will not bring good results for some economics and growth.