BB cuts credit-deposit ratio by 1.5 percentage points

Bangladesh Bank today slashed loan-deposit ratio by 1.5 percentage points to 83.5 percent in a bid to tighten bank’s capacity to lend.

The central bank issued a circular in this regard this evening.

BB also decided to cut the ratio to 89 percent from present 90 percent for Islamic banks.

All banks have to reduce the ratio within the new limit by June 30 this year, said the circular.

Rising private sector credit growth has fueled BB to rein in the aggressive lending, officials said.