Govt slashes CRR to 5.5 pc: Finance Minister
Finance Minister Abul Maal Abdul Muhith has said, the Cash Reserve Ratio (CRR) has been brought down to 5.5 percent from 6.5 percent. In this process 10 thousand crore taka will reach to the commercial banks of the country.
He said this to the newsmen after holding a closed door meeting with the leaders of bank owners’ organization- Bangladesh Association of Bankers (BAB) in a hotel in the capital on Sunday. The meeting of the entrepreneurs was organized to mitigate the crisis in the banking sector.
Bangladesh Bank Governor Fazle Kabir, BAB Chairman Nazrul Islam Majumder, Awami League President Sheikh Hasina’s Private Sector Development Affairs Advisor and Chairman of IFIC Bank Salman F Rahman and Managing Directors of different banks were present in the meeting.
The Finance Minister said, as a result of bringing down CRR banks will get 10 thousand crore taka in their hands. The move will help banks address their liquidity crisis and lending rates will also come down.
When asked whether this big amount of money could create inflation or not, he said, it won’t create any inflationary pressure.
The minister also informed that the CRR process will be reviewed in next June.