Rationalizing Interest Rate Spread in the Banking Sector: Some Policy Suggestions
Published By: Policy Analysis Unit Bangladesh Bank | Published Date: May, 01 , 2008Despite the removal of restrictions and reforms in the banking sector to facilitate the adoption of a market oriented interest rate policy, interest rates are yet to become fully responsive to the market. In this context, the Bangladesh Bank (BB) as the regulatory authority of the country’s banking and financial system has taken steps to persuade the banks to reduce the IRS in a rational manner. In view of the importance of the issue, this note examines the recent movements in IRS and reviews the underlying factors that are important in reducing IRS in the country’s banking sector.
Author(s): Bangladesh Bank | Posted on: Jan 23, 2016 | Views() | Download (529)