Scheduled Banks and Non-Banking Financial Institutions (NBFIs) in Bangladesh are engaging in call money lending to address liquidity pressures, often exceeding the maximum interest rate of 9.50 % set by most banks. Transactions totaling Tk 5,811 crores have been recorded at rates up to 9.90 %, prompting warnings of penalties from the central bank for violating the interest rate ceiling.
Data from Bangladesh Bank reveals that 33 banks and 6 financial institutions have lent and borrowed funds, respectively, at rates surpassing the prescribed limit. Government banks like Janata Bank and specialized institutions like Bangladesh Krishi Bank are among those involved in such transactions. The central bank views these activities as contrary to banking policy and has announced investigations, with penalties awaiting those found guilty of rule violations. Non-bank financial institutions such as IDLC, DBH, PFIN, Bay Leasing, BD Finance, and ICB have also been warned of potential consequences for similar infractions in the call money market.
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