To keep up liquidity stream, cash is, on the other hand, raised from the business sector through Bangladesh Bank bills. The central bank wants the banks to invest in businesses.
Clarifying the reason behind the choice, Md Abul Kashem, Deputy Governor of Bangladesh Bank, told different media, “The national bank needs the banks to put resources into organizations. That is the fundamental reason for the banks. Their target ought not be to procure benefit by keeping investors’ cash with Bangladesh Bank.”
Business banks acquire cash from the national bank through repo. At present BB charges financing cost of 7.25 percent on it. Since Nov 16, Bangladesh Bank has not been diverting any solicitation from business banks to store their surplus cash through converse repo.
The representative senator said, “The national bank figures money related strategy and as needs be takes activities to keep up speculation and liquidity stream in the business sector.”
Abul Kashem said, “Throughout the previous couple of days we are not taking stores through converse repo. Yet, we have raised some cash from the business sector through Bangladesh Bank bills.”
As indicated by BB figures, it last took stores of Tk 20.46 billion through opposite repo on Nov 15.
On Nov 30, the national bank got 59 offers from different banks for the buy of Bank bills. It therefore raised Tk 24.6 billion as against 22 offers that had offered the most minimal loan cost of 4.70 percent.
As indicated by media reports, the unmoving cash in the keeping money division in Bangladesh has crossed Tk 1 trillion.
In spite of being in control of a lot of surplus cash, banks are not demonstrating much enthusiasm for dispensing advances. Industrialists whine that it is not practical to bring credits with loan costs of two digits. Henceforth, there is no speculation development.
A bank is qualified for dispense 81 percent of its store as advances. However, according to Bangladesh Bank’s information as of Aug 27, the credit-store proportion is 68.75 percent.