Due to Bangladesh Bank’s frequent changes in the basic policies of the banking sector, confusion has arisen among the customers. Since last July, the central bank has changed the lending rate policy several times. Commercial banks and finance companies have also changed interest rates frequently. As a result exporters, importers, traders and depositors are confused. Problems have also arisen in keeping the accounts of the concerned parties. At the same time, since the beginning of the dollar crisis, the central bank has frequently changed its policy regarding its pricing. It did not stabilize the dollar price. Dollars are not even available at fixed prices. As a result, the policy change did not have any benefit. As a result of the reverse confusion, the liquidity crisis in the banking sector has become evident, so the dollar crisis has not ended.

In this context, the former governor of the central bank. Salehuddin Ahmed said, banks need a permanent management policy. Banks will change their policies from time to time regarding that policy. Then just as customers will understand where the situation is going, banks will know when to act. Without specific policies, the management of banks will be chaotic. As it is now.

According to sources, loan interest rates were fixed at a maximum of 9 percent before Corona. During talks on borrowing from the IMF in 2022, the agency suggested lifting the interest rate ceiling and making it market-based. At the same time, it took the initiative to increase the interest rate under the contractionary monetary policy to prevent the rise in inflation. At that time, the interest rate of loans was increased in some sectors including commercial, consumer. The central bank announced the corridor by lifting the loan interest rate limit from July 2023 as per IMF conditions. It introduced the method of determining the interest rate by adding the specified portion to the average interest rate of the government’s 6-month treasury bills. Initially, the average interest rate on Treasury bills was 7.11 percent. This rate is increasing every month. Due to this, the interest rate continues to increase. In February, Treasury bill interest rates rose to double digits. Then the central bank changes the base interest rate again. The average interest rate on treasury bills was previously fixed at 3.5 percent for general loans, 4.5 percent for consumer loans, and 2.5 percent for pre-shipment loans for agriculture, rural and export sectors. The base interest rate is reduced by 50 percent when the interest rate on Treasury bills increases. Banks started setting new interest rates by adding 3 percent to general loans, 1 percent to consumer loans, total 4 percent as service charge, pre-shipment loans of export sector, 2 percent to agricultural and rural loans. Banks fixed interest rates on this basis till April. As a result, the loan interest rate has increased to a maximum of 14.55 percent. General loan interest rate is 13.55 percent, rural and agricultural loan interest rate is 12.55 percent. The interest rate on pre-shipment loan is 12.55 percent. Consumer loan interest rate rises to 14.55 percent. After a year passed, the central bank again changed its decision. This time, the central bank announced that the interest rate will be based on the market by withdrawing from the interest corridor. Which is implemented immediately. But the banks have not decided the interest rate now. The interest rate charged under the previous system is still working. It takes some time to declare the interest under the new rules. Because this rate has to be formulated and announced with the approval of the board.

Talking to a few banks, it is known that the interest rate policy has changed every month since last July. As the banks are in trouble while calculating the interest rate of the loan, so are the customers. Because the interest rate changes every month, customers have to change the interest every 6 months. The loan interest rate has increased from 2 to 2.5 percent. Customers are annoyed by this. Due to frequent changes in interest rates, banks could not fix the interest rates of various savings and loan schemes permanently. As a result they could not publish any prospectus. Meanwhile, customers could not make any long-term plans due to frequent changes in loan interest rates. Interest rates on deposits are also changing frequently as loan interest rates change. As a result, banks are forced to change the deposit interest rates.

By introducing market-based interest rates on Wednesday, the approval letter for disbursement of loans has specified the number of points and the percentage of the interest rate increase. Businessmen are happy with it. Because they are now getting a cap on interest rates. As a result, banks will not be able to increase interest rates from time to time.

Former president of Bangladesh Economics Association and former professor of economics department of Chittagong University. Moinul Islam said, changing the policy so often is not correct. Policies can be changed on an urgent basis, but frequent changes to policies that directly involve customers can lead to confusion. Because customers do not keep interest rate information every month.

In this regard, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said, the interest rate of export loans has changed frequently in the last 9 months. As a result, the rate of interest was different for each invoice. There needs to be a cap on interest rates. Then businessmen can make long-term plans.

Policy change in dollar price: From March 2022, the price of dollar in the country started to increase. In the beginning, the price of the dollar was increased or decreased on the advice of the central bank. If the IMF objected to this, the matter of setting the dollar price was left to the Bangladesh Foreign Exchange Dealers Association (BAFEDA) and the Association of Bankers, Bangladesh (ABB). In this manner

And there was central bank intervention in determining the price of the dollar. During the announcement of monetary policy in July last year, the central bank announced the introduction of the crawling peg system (allowing the dollar price to fluctuate within a specified range) to determine the price of the dollar. This procedure was introduced from Wednesday. On this day, the highest price of the dollar was fixed at 117 taka. Banks will be able to sell dollars for one taka less or more. This rate is effective from Thursday. But from the first day this rate was not very effective in the market. Because of the low flow of dollars in the banks, they did not give dollars to most of the customers at that price. Instead, the banks have sold dollars in advance at the rate of 125 to 129 taka. Some banks sold the dollar at the rate of 117 taka 45 paisa to 118 taka.

Meanwhile, in the curb market or the open market, the price of the dollar rose to a maximum of 125 rupees. However, at the beginning of the day, some dollars were sold at 123 taka. On Wednesday, the highest price of the dollar was 117 rupees.

Before Wednesday, banks were supposed to sell dollars at a maximum of 110 rupees. But very few dollars were sold at that price. In most cases, the price of the dollar was 122 to 125 rupees.

Loan interest rates rise: Loan interest rates have increased again the day after market-based dollar prices. The interest rate has increased by 10.5 percent in this period. The previous day the highest interest rate was 9.5 percent. On Thursday, it increased to 10 percent. At the same time, the interest rate on short-term loans increased to 13 percent. Earlier its rate was 11 and a half percent. Apart from this, the tendency of banks to borrow from the central bank continues. However, the amount of borrowing in this sector has decreased. But increased from Kolmani.