Community Bank

Bangladesh Bank clips ADR limit

MNA Business Desk: The Bangladesh Bank issued a directive to banks to bring down their advance deposit ratio or ADR to highest 83.50 per cent down from over 85 per cent now, by 30 June.

This will be applicable for the conventional banks while such limit for the Islamic banks and the Islamic branches of the conventional banks will be highest 89 per cent, down from over 90 per cent now, where it is termed as IDR.

As per the circular, until the next directive, the conventional banks will have to maintain their ADR at 83.50 per cent (80.50 per cent plus 3 per cent by the decision of bank board) and Shariah-based Islamic banks have to have the investment deposit ratio (IDR) at 89 per cent (88 per cent plus one per cent by the board decision).

The circular came a day after Bangladesh Bank governor Fazle Kabir gave a hint on Monday while unveiling monetary policy statement that the central bank will soon take measures to contain the aggressive banking by some banks.

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