Just six months ago, the banking sector was facing problems over surplus liquidity. The latest Bangladesh Bank report says the surplus liquidity in banking sector is now Tk 86,463 crore. If the Advance Deposit Ratio is reduced now, the banking sector will need additional deposit of Tk 20,000 – Tk25,000 crore,” he added. Meanwhile, Bangladesh Bank has decided to reduce the ratio of loan and deposit of banking sector to prevent aggressive banking activities. The liquidity crisis in the banking sector is the reason behind the rise in interest rates, said the BGMEA chief.

Source: Dhaka Tribune January 30, 2018 17:03 UTC