Private banks to cut rate by 1 percentage point from July
UNB, Dhaka
Private Commercial Banks (PCBs) yesterday decided to cut their respective interest rates on loans by one percentage point with effect from July.They would formally announce the lending rate-cut decision at the monthly bankers' meeting with Bangladesh Bank next month. The decision, taken at a meeting of the Bangladesh Association of Bankers at its office in the Dilkusha Commercial Area, was to follow the central bank's repeated instructions to lower the lending rates, said a meeting source. Average lending rate now stood at 12.40 percent. The meeting also formed a three-member committee to recommend the central bank to simplify the KYC (know your client) form introduced earlier under the Money Laundering Prevention Act. The yesterday's meeting observed that the banks use different types of forms to report clients' information to the central bank, but those are complex ones and sometimes cause harassment to the clients.
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