Bangladesh Bank has raised advance to deposit ratio (ADR) by 2.0 percentage points, enabling banks to lend more during the coronavirus lockdown.
ADR, which measures loans as the percentage of deposits for commercial banks, will be 87 per cent for the general banks. The rate will be 92 per cent for Sharia-based banking, reports bdnews24.com.
The central bank ramped up its efforts to help the economy cope up with the effects of the coronavirus pandemic in a notice on Sunday, two days after the lockdown to contain the outbreak was extended to Apr 25.
It said the banks have been given the option to implement the Tk 727.5 billion bailout package which the damaged industries will get as loans.
The central bank had earlier lowered rep rate and cash reserve requirement, or CRR, to enable the banks to implement the stimulus.
