The interest rate spread between deposits and loans in Bangladesh has reached 6.03 percent, the highest in two decades, signaling that banks are profiting at the expense of depositors and borrowers. The spread began rising after the Bangladesh Bank removed the 9 percent lending cap and introduced market-driven rates under IMF recommendations. While interest rates on both deposits and loans increased, the rise in lending rates outpaced deposit rates, widening the gap. Experts warn that this is unusually high, with negative consequences for both savers and borrowers. The Bangladesh Bank is urged to address the issue to lower the spread, which indicates inefficiencies in the banking sector.
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