BB seeks banks’ updated bad loan, provisioning status
The central bank yesterday asked banks to send their figure of defaulted loans and provisioning of the first quarter of this year within tomorrow.
Banks have been also asked to provide their announced interest rate on both loans and savings for March, April and May within the next day, according to a Bangladesh Bank letter sent out to all managing directors of lenders.
The central bank earlier asked banks to provide the data within 10 days after completion of the ongoing general holidays declared by the government to tackle the spread of the coronavirus pandemic.
But the government has extended the general holidays to longer than expected.
Against the backdrop, the central bank asked banks to send their information to update its regular statements.
The BB will give the same instruction to banks for their other data needed to update its all monthly, quarterly, half-yearly and other statements.
On the pretext of the shutdown, the central bank has stopped preparing its major economic statements -- the balance of payments, the growth of reserve and board money and their multiplier effect, private sector credit growth and many other statistical reports -- since February. It has just prepared the import figure yesterday after a pause.
This will help the central bank to monitor the money market and financial sector smoothly during the ongoing meltdown.
"Updated information is highly important to fight against the ongoing economic fallout. So, this is a good decision beyond doubt," said a managing director, wishing not to be named.
In a separate move, the central bank said employees of banks will not get special incentive after May 28.
The BB asked banks on April 12 to provide the incentive to their employees who are working during the shutdown.
As per the central bank instruction, bankers will get a month's basic salary if they work at least 10 days during the ongoing shutdown.
The special incentive will range from a minimum of Tk 30,000 and a maximum of Tk 100,000 a month during the shutdown.
But the latest central bank notice said that the government had taken different initiatives to revive the economy. As part of the move, the central bank has moved to extend the banking hours instead of limited banking.
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