Private banks asked to disburse 2.5pc of total loans
Bangladesh Bank has asked all private commercial banks and foreign banks operating in Bangladesh to disburse at least 2.5 per cent of their respective total loans/advances for agricultural and rural sectors. The central bank on Monday issued a circular to this effect that would come into force from July 1 this year, the beginning of the new fiscal.
Any bank failing to follow the central bank directive will have to deposit an amount equal to the shortfall in loans/advances to Bangladesh Bank for one year, the circular said. The central bank directive, however, will not be applicable for the state-owned banks as these banks have already been disbursing more than 2.5 per cent of their respective loans/advances for the agricultural and rural sectors.
News: The Independent/ Bangladesh/ May-17-2011