No liquidity crisis in banking sector: BB governor

Bangladesh Bank governor Atiur Rahman yesterday said there is not liquidity crisis in the banking sector and the call money rate now stands at 3-4 per cent, reports UNB.
He said this while addressing the concluding ceremony of a foundation training course of Bangladesh Bank’s newly appointed officers at its training academy at Mirpur in the capital.
Giving a brief description of the country’s banking sector, the central bank governor said the rate of capital adequacy has been staying at 10.53 per cent against the international standard rate of 8 per cent.
He said Bangladesh Bank has been successful in bringing down the rate of default loans to single digit. “Now the provision coverage against the default loan has improved to 95 per cent.”
Atiur said the import of the capital machinery is on the rising trend while the spread between interest and deposits now has come down to 4.77 per cent. “It’ll continue to decline further.”
The Governor said the currency exchange rate remains stable for long, while that of investment is gaining pace. “If investment is rising, it’ll obviously push up the economic growth… and we hope the country’s GDP growth will go up to 7 per cent this fiscal,” he added.  He said the central bank has initiated a move to increase the investment in the manufacturing sector, particularly in the small and medium enterprises (SME). The governor said the central bank has created a $300 million fund with the help of the World Bank to provide long-term loans to the manufacturing sector.
Besides, he said, another $200 million fund is now at the approval stage for the same purpose.

No liquidity crisis in banking sector: BB governor

Bangladesh Bank governor Atiur Rahman yesterday said there is not liquidity crisis in the banking sector and the call money rate now stands at 3-4 per cent, reports UNB. He said this while addressing the concluding ceremony of a foundation training course of Bangladesh Banks newly appointed officers at its training academy at Mirpur in the capital. Giving a brief description of the countrys banking sector, the central bank governor said the rate of capital adequacy has been staying at 10.53 per cent against the international standard rate of 8 per cent. He said Bangladesh Bank has been successful in bringing down the rate of default loans to single digit. Now the provision coverage against the default loan has improved to 95 per cent. Atiur said the import of the capital machinery is on the rising trend while the spread between interest and deposits now has come down to 4.77 per cent. Itll continue to decline further. The Governor said the currency exchange rate remains stable for long, while that of investment is gaining pace. If investment is rising, itll obviously push up the economic growth and we hope the countrys GDP growth will go up to 7 per cent this fiscal, he added. He said the central bank has initiated a move to increase the investment in the manufacturing sector, particularly in the small and medium enterprises (SME). The governor said the central bank has created a $300 million fund with the help of the World Bank to provide long-term loans to the manufacturing sector. Besides, he said, another $200 million fund is now at the approval stage for the same purpose.