BRPD-1 Circular Letter No. 22: Regarding the Intermediation Spread Between the Weighted Average Interest Rate of Advances and Deposits

Bangladesh Bank Central Office Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD-1 Banking Regulation and Policy Department-1 29 June 2026 BRPD-1 Circular Letter No. 22 Date: ------------------ 15 Asharh 1433 Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh Dear Sir,

With reference to the subject cited above, you are requested to refer to BRPD-1 Circular Letter No. 67 dated 29 November 2023 regarding the determination of the spread between the weighted average interest rate of loans and deposits (WALR Spread).

2. Through the aforementioned circular letter, all previous instructions regarding the determination of the spread between the weighted average interest rate of loans and deposits (WALR Spread) were rescinded in the context of establishing the Reference Rate and Market-Based Interest Rate System (RRMBIRS). Even after the subsequent restoration of the fully market-based interest rate system through BRPD-1 Circular Letter No. 10 dated 08 May 2024, no instructions were issued to banks regarding the determination of the WALR Spread limit. Recently, it has been observed that the WALR Spread has increased excessively due to the determination of loan interest rates at higher levels compared to deposit interest rates in many banks, which is hindering business and industrial growth.

3. Therefore, you are hereby instructed to limit the spread between the weighted average interest rate of loans and deposits (WALR Spread) to 4% for sectors other than Credit Cards and Consumer Loans, with the aim of establishing a reasonable interest rate for loans in various sectors, including productive sectors.

4. This instruction is issued under the powers conferred by Sections 29(2)(c) and 45 of the Bank Companies Act, 1991.

5. This instruction shall take immediate effect.

Yours faithfully, (Gazi Md. Mahfuzul Islam) Director (BRPD-1) Phone: 9530252