DHAKA: The government has decided to reduce the Cash Reserve Ratio (CRR) for commercial banks by one percent, said Finance Minister Abul Maal Abdul Muhith.

The decision was made in meeting between finance minister Muhith and Bangladesh Association of Bankers (BAB) in city’s Sonargaon hotel on Sunday noon (April 1).

Minister Muhith said CRR, a specified minimum fraction of the total deposits of customers that commercial banks have to hold as reserves either in cash or as deposits with the central bank, has been reduced to 5.5 percent from previous 6.5 percent. 

However, the outcome of this decision will be reviewed in June, Muhith said. 

The meeting was held in an effort to solve the on-going crisis at banking sector where Bangladesh Bank governor Fazle Kabir, BAB chairman Nazrul Islam Majumdar, IFIC Bank chairman Salman F Rahman and directors of other banks attended. 

BDST: 1650 HRS, APR 1, 2018
AP/SMS