Bangladesh Bank lowers general provision to increase housing loans

The Bangladesh Bank has lowered the required general provision against unclassified housing finance from 2 percent to 1 percent to allow the banks to extend more loans for housing.

Chief Economics Correspondentbdnews24.com
Published : 22 Feb 2018, 06:12 PM
Updated : 22 Feb 2018, 06:12 PM

In an executive order on Thursday, the central bank said the move aims to promote growth in the real estate sector by encouraging the banks to participate in housing finance.

It issued the order with retroactive effect from Dec 31 last year.

A central bank official said, “The rate has been lowered so that the banks can invest more in housing sector. This will bolster the sector and others related to it.”