Regulatory Alerts2023-11-29
Added
BRPD Circular Letter No. 67: Regarding Intermediation Spread Limit for Rationalization of Advance and Deposit
The Bangladesh Bank Banking Regulation and Policy Department (BRPD) withdraws the mandatory 4% spread limit between the weighted average interest rates of loans and deposits, which was previously established in Circular Letters No. 09 (dated May 30, 2018) and No. 11 (dated June 12, 2018). This directive applies to all scheduled banks operating in Bangladesh. The withdrawal is necessitated by the implementation of market-based interest rates for loans, which allows for the rationalization of interest rates across all sectors without the need for a fixed spread cap, although banks remain required to continue submitting regular reports on the spread between weighted average loan and deposit interest rates.
Topics
monetary
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