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Credit flow into Bangladesh's private sector increased further in August following rising demand for loans, particularly for trade financing, to settle import payment obligations.
Loans under low-cost refinancing schemes, offered by the central bank, have also pushed up credit growth, particularly in the private sector, officials said on Tuesday.
The credit flow rose to 14.07 per cent in August 2022 on a year-on-year basis, from 13.95 per cent a month before, according to the central bank's latest statistics. It was 12.94 per cent in May this calendar year.
It was 0.47-percentage points higher than the Bangladesh Bank (BB) target of 13.60 per cent for the first half (H1) of the current fiscal year (FY) 2022-23.
Experts, however, feared that the ongoing upward trend of inflationary on the economy may fuel further if the existing trend in the private sector credit growth continues.