Bangladesh Bank (BB) logoThe central bank issued a circular in this regard, enhancing the ADR for conventional banks to 87% from 85% and IDR (investment-deposit ratio) for Islamic banks to 92% from 90%The Bangladesh Bank on Sunday raised the banks’ advance-deposit ratio (ADR) by 2% to increase credit supply and boost investment in the economy hard hit by the steady and surging coronavirus cases. The central bank issued a circular in this regard, enhancing the ADR for conventional banks to 87% from 85% and IDR (investment-deposit ratio) for Islamic banks to 92% from 90%. Like many other countries of the world, the economic activities of Bangladesh reduced significantly owing to the outbreak of the novel coronavirus, said the BB circular. Bankers welcomed the central bank’s latest decision, saying the measure would help implement the bailout package rolled out to shore up battered businesses. Earlier, the central bank took several initiatives to boost liquidity in the banking sector during the pandemic coronavirus.

Source: Dhaka Tribune April 12, 2020 13:41 UTC