Regulatory Alerts2026-06-29
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BRPD-1 Circular Letter No. 22: Regarding the Intermediation Spread Between the Weighted Average Interest Rate of Advances and Deposits
The document instructs all scheduled banks operating in Bangladesh to limit the spread between the weighted average interest rate of advances and deposits to 4% for sectors other than Credit Cards and Consumer Loans. This directive supersedes previous instructions regarding the spread and is issued under the powers granted by Sections 29(2)(c) and 45 of the Bank Companies Act, 1991. The instruction takes immediate effect to address excessive spreads that are hindering business and industrial growth.
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