�Private sector credit growth highest in 3 years�

The credit to private sector marked a significant rise in the past eight months of the current 2015-16 financial year (FY16), according to Bangladesh Bank (BB), reports BSS.
The latest data of the central bank showed that the credit to private sector grew by 15.11 per cent during July-February period of the FY16, which was the
highest in the past three years since December 2012 when the growth was 16.6 per cent.
The credit growth, which refers to financial resources provided to the private sector by financial corporations, also exceeded the current monetary policy of target of 14.8 per cent, set by the central bank.
At the same time, credit to the public sector declined by 1.9 per cent due to limited bank borrowing requirements by the government.
The rising trend of private sector credit growth was attributed mainly to BB's revised policy rates and the sliding real lending rate.
Besides, the Centre for Policy Dialogue (CPD) said that the higher trade activities in recent months would generate demand for additional credit. The think-tank in its "State of the Bangladesh Economy in FY2015-16" suggested that the central should examine the composition to see how much of the private sector credit growth is attributed to consumer loans, and how much was actually disbursed to productive sectors.

�Private sector credit growth highest in 3 years�

The credit to private sector marked a significant rise in the past eight months of the current 2015-16 financial year (FY16), according to Bangladesh Bank (BB), reports BSS. The latest data of the central bank showed that the credit to private sector grew by 15.11 per cent during July-February period of the FY16, which was the highest in the past three years since December 2012 when the growth was 16.6 per cent. The credit growth, which refers to financial resources provided to the private sector by financial corporations, also exceeded the current monetary policy of target of 14.8 per cent, set by the central bank. At the same time, credit to the public sector declined by 1.9 per cent due to limited bank borrowing requirements by the government. The rising trend of private sector credit growth was attributed mainly to BBs revised policy rates and the sliding real lending rate. Besides, the Centre for Policy Dialogue (CPD) said that the higher trade activities in recent months would generate demand for additional credit. The think-tank in its State of the Bangladesh Economy in FY2015-16 suggested that the central should examine the composition to see how much of the private sector credit growth is attributed to consumer loans, and how much was actually disbursed to productive sectors.