Banks warned of risky lending
Bangladesh Bank (BB) yesterday advised commercial banks not to do any lending violating the core risk guideline.
The central bank also said the credit deposit ratio should be below 82 percent.
The advice followed separate meetings between the central bank and two commercial banks-- AB Bank and Eastern Bank.
The meetings are part of the BB move to protect the banks from doing risky lending. More than 70 percent banks are now doing so.
AB Bank's lending was found 85 percent of its deposit and Eastern Bank's 97 percent. But the standard limit of lending is 82 percent of a bank's deposit.
Out of 48 banks, credit deposit ratio of eight banks is more than 100 percent, while the ratio of 11 other banks is more than 90 percent. The ratio is more than 82 in the case of the remaining ones.
On Sunday, the central bank will sit with two other banks to discuss about the risky lending.
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