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Published : 21 Jun 2023, 02:54 AM
After replacing the lending rate cap with a market-driven reference rate for loans, the Bangladesh Bank has set a ceiling on deposit interest rate for non-bank financial institutions.
The deposit interest rate for NBFIs will be based on a market-driven reference rate, effective from Jul 1, the central bank said in a notice on Tuesday.
The reference rate will be determined on the basis of the six-month moving average rate of treasury bills, which is 7.13 percent now.
The central bank said the NBFIs can let their clients enjoy interests of up to 2 percentage points above the reference rate on deposits, which means the new deposit interest rate ceiling will be 9.13 percent for now.
The reference lending rate will also be determined on the basis of the six-month moving average rate of treasury bills, with a margin of up to 3 percentage points for banks and 5 percentage points for non-banking financial institutions, the Bangladesh Bank said in the monetary policy unveiled for the first half f 2023-24 fiscal year on Sunday.
It means banks will be able to charge a maximum of 10.13 percent interest on loans for now.
The rate will be 12.13 percent for non-bank financial institutions, meaning the spread between the lending and deposit interest rates will be a maximum 3 percentage points.
They will be able to raise the rates by another 1 percentage point to adjust the cost of loans to the CMSME sector and individuals.
The reference rate will be announced on a monthly basis by the central bank.
