BRPD Circular No. 05: Increase in Credit Flow in Productive Sector

Ref: BRPD Circular No. 05
Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. April 25, 2012 BRPD Circular No. 05 Date: ------------------- Baisakh 12, 1419 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh.

Dear Sir,

Increase in Credit Flow in Productive Sector.

It has recently been observed that the flow of credit in the consumer loan sector of various scheduled banks has increased. There is a risk that the concentration of credit in non-productive sectors will reduce the flow of credit in the productive sector, adversely affecting the country's economy. In this situation, it is necessary to increase the flow of credit in the productive sector to accelerate economic growth by bringing dynamism to the country's economic transactions.

In order to achieve the desired economic growth by reducing credit flow in non-productive and consumer loan sectors and increasing credit flow in the productive sector, it has been decided in this regard that the growth of credit in the consumer loan sector shall not exceed the average growth of the bank's total credit under any circumstances.

This instruction shall be implemented immediately.

Please acknowledge receipt.

Yours faithfully,

Signed
(Md. Anowarul Islam)
Deputy General Manager
Phone: 7120377