Regulatory Alerts2024-03-05
Added
DFIM Circular Letter No. 08: Interest/Profit Rate of Deposit and Loan/Lease/Investment
Finance companies operating in Bangladesh must set the maximum interest or profit rate on deposits at BBSW + 2.50% and on loans, leases, or investments at BBSW + 5.50%. These rates apply to all new deposits collected and loans distributed after the issuance of this circular. All other instructions from DFIM Circular No. 07/2023 remain unchanged, and these directives are effective immediately under Section 41(2)(d) of the Finance Companies Act, 2023.
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.
DFIM Circular Letter No. 08 Managing Directors/Chief Executive Officers All Finance Companies operating in Bangladesh.
Dear Sir,
Re: Interest/Profit Rate of Deposit and Loan/Lease/Investment.
Reference is drawn to your attention to DFIM Circular No. 07, dated: 20 June 2023, DFIM Circular Letter No. 21, dated: 08 October 2023, and DFIM Circular Letter No. 25, dated: 29 November 2023, regarding the above subject.
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Considering the current monetary policy rates, the interest/profit rates on deposits and loans of finance companies shall be determined as follows: (a) The maximum interest/profit rate on deposits shall be BBSW + 2.50%; and (b) The maximum interest/profit rate on loans/leases/investments shall be BBSW + 5.50%.
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The instructions in paragraph 2 above shall apply to newly collected deposits and distributed loans from the issuance of this circular letter. In addition, all other instructions of DFIM Circular No. 07/2023 shall remain unchanged.
These instructions are issued under the authority granted by Section 41(2)(d) of the Finance Companies Act, 2023, and shall be effective immediately.
Yours faithfully,
(Md. Asaduzzaman Khan) Director (DFIM) Phone: 9530178.
21 Falgun 1430 Date: 05 March 2024
Financial Institutions and Markets Department