BB asks banks to cut energy use

Bangladesh Bank yesterday asked banks to reduce use of electricity and energy consumption as part of the austerity measures taken by the government to contain the volatility in the foreign exchange market. 

In late July, Bangladesh Bank asked the lenders to cut back allocations for the use of petrol, diesel, gas and lubricant by at least 20 per cent within this fiscal year.

But the recent price hike of the petroleum products will further push up the banks' costs, which is why implementing the central bank's previous instruction will be difficult for lenders, said a BB official.

Under such a situation, banks were instructed not to use official vehicles for personal purposes, ignoring the rules and regulations, according to a BB notice.

The central bank also asked banks to allocate vehicles on a priority basis to carry out important tasks.

In addition, banks were ordered not to unnecessarily run air conditioning systems, electric bulbs, kettles and other equipment.

The BB, however, said banks have to follow the existing instructions for reducing their allocations for the use of petroleum products and gas by 20 per cent and electricity bills by 25 by this fiscal year.