Banking system has Tk 760b idle fund

Golam Mowla
Published : 08:00, Jul 07, 2018 | Updated : 08:00, Jul 07, 2018

Banking system has Tk 760b idle fund The banking system in the country has over Tk 760 billion ($9 billion) idle money, most of which is held by the public sector banks.
The surplus liquidity in the public sector banks stood at Tk 430 billion ($5 billion) at the end of Mar this year, according to the Bangladesh Bank data.
Director of Center for Policy Dialogue (CPD) Dr Khandakar Golam Moazzem said, "Some private banks might face liquidity crises due to aggressive lending, but there should not be any money shortage in the overall system."
Meanwhile, the state-owned banks are bailing out the fund-hungry private sector institutions as the public organisations will now deposit their idle money with the private entities at six per cent rate.
Chairman of the Association of Bankers Bangladesh (ABB) Syed Mahbubur Rahman told Bangla Tribune that the private banks and other financial organisations can fetch deposits from the government banks soon at a low rate.