Bangladesh Bank on Tuesday asked scheduled banks to maintain cash reserve requirement and statutory liquidity ratio separately. The BB issued a circular to managing directors and chief executive officers of all banks asking them to follow the new rules from February 1, 2014.
The banks are now placing their whole deposited money of their respective current accounts with the BB as SLR, but they will have to preserve 6 per cent as CRR with the accounts and the remaining money will be treated as SLR, a BB official told New Age.
A scheduled bank has to maintain a current account with the BB and its deposit with the account is treated as SLR, he explained.
From February 1, the banks will have to place the SLR of the current account after deducting 6.0 per cent as CRR.
The BB has made the decision as per Bank Company Act (Amended) 2013, the central bank circular said.
The conventional banks have to maintain with the BB the SLR at 19 per cent, including the CRR. The banks are also allowed to maintain the CRR at 5.50 per cent on the daily basis, but the bi-weekly average has to be 6.0 per cent.
On the other hand, the Shariah-based Islamic banks have to maintain 11.50 per cent SLR including the CRR, as they cannot purchase any bonds and government-approved securities that involve receipt of interest.
Islamic banks also have to maintain 6.0 per cent CRR of 11.50 per cent SLR.
-With New Age input
