A few months ago, the country’s banks faced a dire liquidity crisis. This happened mainly because of financial irregularities. As a result customers started withdrawing money. Within a month, the customer had withdrawn about 1 lakh 50 thousand crores. However, later that money started coming back to the bank again. However, there is still a liquidity crisis in many banks. Scheduled banks and Non-Banking Financial Institutions or NBFIs are lending money (overnight) to each other to cope with the liquidity crunch.
Maximum interest limit in Kalmani is 9.50 percent. However, there is no need to comply with the maximum interest limit set by most banks. 33 commercial banks and six financial institutions of the country have transacted Tk 5 thousand 811 crore with maximum interest of 9.90 percent. Bangladesh Bank has warned of punishment against institutions for violating the maximum interest rate limit. Institutions will face fines if they fail to respond satisfactorily. Besides, the liquidity facility of Bangladesh Bank may also be cancelled.
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On March 27, the interest rate of Kalmani rose to 9.50 percent, the highest in 11 years. This is the highest since 2012. In that year, the interest rate of Kalmani rose to a maximum of 12.82 percent.
One bank borrows from another bank to meet daily and short-term money needs. Banks that have excess liquidity lend. They take interest in exchange for this loan. The interest rate depends on the borrowing, how long it is for, etc. Interest rates also fluctuate depending on demand and supply. Call money is issued primarily under the supervision of the central bank.
The managing director of a fourth generation bank said that money laundering is borrowing money from one bank to another. One bank borrows from another bank to meet daily and short-term money needs. Banks that have excess liquidity lend. They take interest in exchange for this loan. The interest rate depends on the borrowing, how long it is for, etc. Interest rates also fluctuate depending on demand and supply. Loans are given mainly under the supervision of the central bank.
A central bank source said that 33 banks have violated the fixed maximum interest limit of 9.50 paise. These banks have borrowed 3 thousand 105 crores till January 25 without complying with the interest rate limit. At the same time the accused banks lent 2,610 crores to other banks. Similarly, 6 non-banking financial institutions broke the maximum interest limit and borrowed Tk 953.5 million at the rate of 9.90 percent. Bangladesh Bank sees such transaction as violation of banking policy.
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According to the data, the government-owned Janata Bank has borrowed 481 crores from another bank in Callmarket at the rate of 9 75 paisa. State-owned bank Bangladesh Development Bank has also lent Tk 95 crore at the same rate. Specialized Bangladesh Krishi Bank has lent Tk 459 crore at Tk 9.90 paise. Foreign sector State Bank of India has lent 304 crore rupees at the rate of 9 taka 60 paise, Bank of Sillong has lent 116 crore rupees at the rate of 9 taka 75 paise and Bank Al Falah has lent 176 crore rupees in Kolmani.
33 commercial banks and six financial institutions of the country have transacted Tk 5 thousand 811 crore with maximum interest of 9.90 percent. Bangladesh Bank has warned of punishment against institutions for violating the maximum interest rate limit. Institutions will face fines if they fail to respond satisfactorily. Besides, the liquidity facility of Bangladesh Bank may also be cancelled.
Among private banks, City Bank has lent 300 crore rupees at the rate of 9 rupees 75 paise. AB Bank borrowed 60 crores at the rate of 9.80 paise. Midland Bank has borrowed 235 crore rupees at the interest rate of 9 rupees 80 paise. IFIC Bank has lent 209 crores at an interest rate of 990 paisa and Citizen Bank has lent 18 crores at a rate of 9 taka 75 paisa to other banks. UCB borrowed Tk 297 crore at an interest rate of Tk 9 75 paise and at the same time the bank lent Tk 280 crore to other banks at an interest rate of Tk 9 80 paise. NCC Bank has borrowed 104 crores at 9.80 paise interest, NRB has borrowed 75 crores at the same interest rate.
Eastern Bank borrowed Tk 123 crore at the rate of Tk 9 60 paise, SBAC Bank borrowed Tk 144 crore at the same rate, Dhaka Bank borrowed Tk 364 crore at the rate of Tk 9 80 paise, Premier Bank borrowed Tk 45 crore at the rate of Tk 9 60 paise. NRBC Bank borrowed 25 crores at an interest rate of 9.75 paise. Madhumati Bank borrowed 115 taka at 9 taka 75 paisa interest; At the same time, the bank lent 61 crore rupees at the same rate.
The private sector Southeast Bank has lent 61 crores to other institutions at an interest rate of 9.75 paise.
Bank Asia borrowed Tk 81 crore at the interest rate of Tk 9 60 paisa but lent Tk 40 crore to other institutions at the same rate. Border Bank has lent 63 crore rupees at an interest rate of 9 taka 90 paisa, Uttara Bank has lent 464 crore rupees at an interest rate of 9 taka 75 paise. Till date, One Bank has borrowed Tk 10 crore at 9.60 paise interest, Pubali Bank has borrowed Tk 255 crore at the same rate, Jamuna Bank Tk 466 crore at Tk 9.90 interest, Meghna Bank Tk 85 crore at Tk 9.80 interest and Community Bank Tk 9 Borrowed 104 crore rupees at 90 paisa interest rate.
Executive Director and Spokesperson of Bangladesh Bank. Majbaul Haque said that the liquidity system is the bank’s own matter. All banks are obliged to follow the law or policy. There was no need to determine the rate if transactions were made at the desired rate from Kolmani. If this happens, there may be instability in the market. However, Bangladesh Bank will investigate before punishing any bank in this regard. Violation of the rules will be punished according to law.
EAR/ ZH/SHS/MS
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