DHAKA, Jan 3, 2018 (BSS) - Bangladesh Bank (BB) is planning to reduce the limit of the Advance Deposit Ratio (ADR) of banks for avoiding their aggressive lending and ensuring quality investment for the country's development.
"BB wants to give a little check against credit disbursements of banks as several banks have already crossed their credit limit," BB Deputy Governor SK Sur Chowdhury told journalists after a meeting with managing directors of the commercial banks at BB's headquarters in the city.
BB Governor Fazle Kabir presided over the meeting.
SK Sur said the ADR limit is likely to come down to 85 percent for the Islamic banks from the existing 90 percent while 80 percent for other banks from the 85 percent.
BB urged the banks to take preparations from now on for the new limit for ensuring quality investment, he added.
During the meeting, he said, BB high officials and bankers discussed on various issues, including inflow of remittance, import, export, private sector credit growth, exchange rate and BB's steps against corruption and irregularities of bankers and board of directors.
Bankers expressed their concerns on the recent changes in top management of several banks, he said adding that BB's governor assured the bankers that no panic would be created among the depositors in the wake of changes in banks' management.
BB, he continued, has taken steps for ensuring good governance in the banking sector and the steps will be geared up against irregularities.
The meeting also stressed on strengthening the Bangladesh International Arbitration Centre (BIAC) by removing complexities about laws of the center.
Among others, Mutual Trust Bank Limited (MTBL) Managing Director Anis A Khan, BASIC Bank Limited Managing Director Muhammad Awal Khan and high officials of the central bank were present at the meeting.