BB lowers general provision to raise housing loans

The central bank has lowered the required general provision against unclassified housing finance from 2.0 per cent to 1.0 per cent allowing banks to extend more loans for housing.

Following an executive order on Thursday, Bangladesh Bank (BB) said the move aims to promote growth in the real estate sector by encouraging the banks to participate in housing finance.

It issued the order with retroactive effect from December 31 last year, according to a bdnews.24 report.

A central bank official said, “The rate has been lowered so that the banks can invest more in housing sector. This will bolster the sector and others related to it.”