Monday, 16 July 2018

Interest rates must be brought down to 3-4%

Prof Dr. Mahbubullah, Economist: There has been debate on whether the state’s money can be kept in private banks. It can be kept at 6% deposit rate. But what should the deposit and interest rates be? Interest rates should be brought down within 3-4%, not more than that. For every bank, profit is a huge target.
If deposits are at 6% interest rate, why can’t they provide loans at 9% interest? Why would banks suffer losses? Banks have incurred loses solely due to their own actions, especially default loans and banks’ failure in loan payments. The banks’ management in this case is very incompetent. There have been instances in the past, for the way private and government banks have distributed loans.
They have distributed loans without any assessment. Giving out loans to businessmen without assessment is callous. Because of this, banks are facing catastrophe and the public cannot take responsibility for it. The banks themselves are facing huge responsibilities, but this has been kept secret. Furthermore, banks’ corporate tax has also been decreased – thus it is not sensible that this opinion is being continuously expressed and could mean that there might be, or already is, some greater conspiracy.
Based on an interview by Muhammad Nayeem, translated by Abrar Hussain

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