BB to cut Cash Reserve Requirement (CRR) by 1.0 percentage point
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The central bank of Bangladesh will slash the Cash Reserve Requirement (CRR) by 1.0 percentage point to 5.5 per cent from the existing level of 6.50 per cent to help mitigating the ongoing liquidity crunch situation on the banking system.
The decision was taken at a tripartite meeting among the Ministry of Finance, Bangladesh Bank (BB) and Bangladesh Association of Banks (BAB) held at a city hotel on Sunday.
“We’ve decided to cut the CRR by 1.0 percentage point considering the overall economic situation until December 31 this calendar subject to be reviewed in June,” Finance Minister AMA Muhith told reporters after the meeting.
Earlier, the government decided to allow state enterprises to deposit 50 per cent of their funds with the private commercial banks (PCBs) instead of 25 per cent.
The decision to raise the share of PCBs was taken at a meeting between finance minister and the banking industry leaders in the capital on Friday.