Banks to charge simple interest rate: Kamal
Published: 09:17 PM, 18 March 2019
Finance Minister AHM Mustafa Kamal said that simple interest rates will be charged on all bank loans instead of present practice of compound rates to lower burden on borrowers.
“In the country, there is a practice of charging compound interest rates on bank loans, which is against global practice. Now, simple interest rate will be applied on bank loans,” kamal informed journalists after holding a meeting with board of directors of all banks and financial institutions at city’s NEC auditorium on Monday.
Kamal identified the practice as a major cause of rising non-performing loans and weak health of the financial sector.
“Businessmen have to take immense risk for starting off any business. But compound interest rate put extra burden on them which sometimes leads to collapse of their business,” he remarked.
The finance minister reiterated that special audits will be conducted in all banks and financial institutions to verify the assets mentioned in their balance sheets.
“The cracks in the banking system has now widened to an extent which calls for a quick response from the policymakers,” he stressed.
In the process, honest and bad businessmen as well as their associates will be identified to support the good ones while bringing unscrupulous ones to book.
“We shall apply our all legal jurisdiction to punish the bad businessmen and their supporters to reclaim the default loans,” Kamal warned.
He clarified that they have no intention to put them behind the bars or wholesale shutting down of their businesses so that employees of good business entities do not lose their job.
“We want to rearrange the banking sector based on a win-win situation,” he said.
Criticizing the practice of providing long-term loans against short-term deposits, the minister informed that they want to create a bond market soon for helping long-term financing.
The finance minister requested all not to come up with any kind of bank related recommendation to him.
The persons well conversant with banking and financial system will be appointed to the bank boards after taking interviews to ensure proper persons sit in the boards, he pointed out.
However, he doesn’t think that the health of the banking sector that much bad as perceived by common people.
As a new financial instrument, the government will soon introduce crop insurance in Rangpur division and haor areas to lower risk of exposure to natural disasters.
- 5828 multimedia classrooms installed in Rajshahi
- Traffic sergeant’s father files writ for compensation
- Minni’s bail hearing Jul 30
- Three father of a newborn baby!
- Shokh to play Minni’s role in Eid
- Habits that extremely harmful for liver
- Rain likely to increase, temperature may fall
- Advance train tickets to be sold at 5 spots
- Fire breaks out at CMCH Psychiatry department
- 25 schoolgirls fall sick from laughing too much
- ‘Lion King’ roars as surpassing ‘Avengers’ record
- Ronaldo will not face rape charges
- Critical security flaw found in VLC Player
- Two robbers killed in Sundarbans gunfight
- Large-scale government data hacks in Russia, Bulgaria
- Mehazabien with new story
- Shinzo Abe wins Japan’s upper house poll
- National Public Service Day-2019 today
- Renu lynched in Badda: 2 more held
- Drug peddler killed in Meherpur gunfight
- Suspended ACC director Basir held
- Bangladesh to play warm-up match today
- ‘Child lifters’ rumor: innocence loses life
- Chandrayaan-2: India launches second Moon mission
- WHO to work with DSCC in combating dengue
- Bangladesh U-19 beat England U-19
- No cattle hat blocking roads: DMP Commissioner
- Books in hand, fear in mind
- BHBCUC suspends Priya Saha
- Farmers passing busy days in cattle fattening
- All News »
- Priya’s allegation is not correct: US Ambassador
- Child’s head in bag, youth lynched in Netrokona
- ‘Lady Killer’ Tisha to fight against formalin in food
- Priya falsify to Trump about Bangladesh
- Woman lynched over child-lifting rumour: 500 sued
- HSC exam results tomorrow
- Rifat murder: Minni at Police Line for questioning
- Renu lynched in Badda, 3 held
- Police want 10-day remand of Minni
- Rifat killing mastermind Minni; says police
- 8 boards attain 71.85 pc pass rate
- Stocks maintain positive trend
- None took ‘liability of denying legal support’ to Minni
- How to get HSC result
- Minni sent to jail
- HSC pass rate increases 7.9 pc
- Edu Minister`s husband Toufiq Nawaz severely ill
- Put Myanmar for Rohingya return; FM urges US
- Court dismisses Minni’s two petitions
- Bangladesh to play warm-up match today
- PM to inaugurate ‘Benapole Express’ Wednesday
- Country’s 7th mobile assembling plant to be launched with FDI
- Minni on 5-day remand
- Ershad’s body in Rangpur
- Ershad’s namaz-e-janaza held in Rangpur
- Man accused in 14 cases killed in gunfight
- Google shuts down AdSense on Android, iOS for web
- Another hit of Gully Boy!
- DIG Mizan shown arrested in bribery case
- Humanity for animal !