Dr Ahmad Al Kabir, Former Chairman, Rupali Bank:
Bangladesh Bank and the banking sector should take a firm line to implement single-digit lending rate.
The dilly-dallying of the banks in implementing single-digit lending rate is unexpected. The single-digit is supposed to come into effect from August 9. The banks have already slashed their deposit rates. There is no point in delaying the implementation of single-digit lending rate when all the banks have already cut their deposit rates.
Bank spread should not go beyond 4-5 percent. Bank spread is the difference between the interest rate that a bank charges a borrower and the interest rate a bank pays a depositor.
The government is also in favour of 5 percent bank spread. As a result, it will not be difficult to bring down interest rate to a single digit. It is not so easy to compel the private sector to implement a decision. That’s why the banks try to seize the opportunity. The banks will be forced to implement the single-digit lending rate if the government takes a firm stand in this regard. It may take some time.
The association of the banks has promised to the people and the government to lower the lending rate to single-digit and the banks should deliver on the promise.
Based on an interview by Ashiq Rahman, translated by Hossen Sohel
Nayeemul Islam khan
1327 Tejgaon Industrial Area (3rd Floor), Dhaka-1208