BB decides to relax daily cash reserve ratio for banks

Staff Reporter :

The central bank has decided to relax the daily cash reserve ratio (CRR) requirement for commercial banks, giving them some breathing space amid persisting liquidity tightness, officials said.

Under the decision, Bangladesh Bank (BB), the country’s central bank, cut the daily CRR maintenance requirement by 50 basis points from the existing 3.50 per cent to 3.0 per cent and the decision will come into effect from Wednesday.

However, the CRR ratio after two weeks and month-end will remain unchanged at 4.0 per cent, The regular CRR-cutting decision came to a couple of weeks after the banking regulator shared its plan with the treasury heads of the banks about squeezing of borrowing facility from the central bank by eliminating the 28-day-tenure liquidity window against repo, which will be effective after Eid-ul-Fitr.