Due to the liquidity crunch, banks' lending tendency is increasing. At the same time, the interest rate of borrowed money is increasing. On Sunday and Monday, banks and finance companies borrowed 42 thousand crores from the central bank, Kolmani market and one bank from another bank. These funds are borrowed through one day, seven day and term instruments. For several days, interest on loans has risen to a maximum of 10 percent. Borrowing rates from the central bank had previously risen to a maximum of 9 percent. It increased to 10 percent on Sunday. Borrowed from the central bank at 10 percent interest on Monday as well.

Meanwhile, the liquidity in the banking sector has increased by Tk 29,000 crore in the 10 months from June to last April. Last June, the liquidity in the banks was 4 lakh 21 thousand crores. In April, it increased to 4 lakh 50 thousand crores. During the period under review, liquidity in banks has increased due to inflow of remittances, increase in deposits and provision of funds from the central bank. Despite the increase in liquidity, the cash crisis in the banks has not ended. Banks are now taking deposits at high interest rates to meet the cash crunch. Besides borrowing from various individuals and institutions. Apart from this central bank, money market and one bank borrowing from another bank.

The trend of this loan is increasing day by day. The information of this weakness in the liquidity management of the banks has also appeared in the IMF report. The agency said, the tendency of central banks to lend to commercial banks should be reduced. It has also been asked to publish an advance report on the bank's liquidity situation.
The central bank has decided to refrain from conducting repo auctions every working day due to IMF conditions. From now on, repo auctions are being held two days a week. However, the central bank has allowed the banks to provide liquidity facilities on a daily basis under special arrangements.

To meet the liquidity crisis, banks and finance companies have borrowed Tk 11,772 crore under special liquidity support from the central bank on Sunday. Its interest rate was 8.5 percent to 10 percent. Earlier, banks and finance companies used to borrow from the central bank at a maximum interest rate of 9 percent.
It increased to a maximum of 10 percent on Sunday. The maximum interest rate rose to 10 percent on Monday. On this day, the banks borrowed 17 thousand 275 crores from the central bank. 29 thousand 47 crores borrowed from the central bank in two days. Apart from this, Kolmani borrowed 6000 crore from the market on Sunday. Borrowed 7 thousand crore rupees on Monday. Borrowed 13 thousand crores in two days. The highest interest rate in this sector has risen to 12 and a half percent.

Sources said banks borrow from the money market for one day, known as 'overnight'. It is returned the next day. However, the lender and borrower can extend or renew the loan period if both parties agree. Besides, banks can take short term loans in instruments of 5 days, 7 days, 12 days, 14 days. Also taking 92 days term loan. At the end of the term, the banks return those loans and take new loans.