BB sets deadline for banks to adjust ADR, IDR limit

Bangladesh Bank (BB) on Thursday asked the scheduled banks to adjust their Advance Deposit Ratio (ADR) or Investment Deposit Ratio (IDR) limit within September 30 this year in line with the central bank’s new rate.

According to a BB circular, the banks, having ADR above the BB allowed limit, will have to submit an action plan to the central bank and will have to submit a report within the first 10 working days of every month about the progress of implementing the directive.

The central bank in January asked all the conventional banks to bring down ADR to 83.5 per cent from 85 per cent, while Shariah-based banks were asked to bring down the investment-deposit ratio to 89 per cent from 90 per cent, reports BSS.