Bangladesh, Dec. 23 -- Bangladesh Bank has constituted a high-powered seven-member committee, headed by its Deputy Governor to prepare a report on probable strategies and action plan to bring country's lending rate to single digit. It set Jan 01, 2020 as the deadline to make single digit lending rate effective.
This type of directed attempts to reduce bank's lending rate is not new in our country. This exercise was carried out on several occasions during the last two decades. All attempts failed to bring down lending rate and in some cases, these even made adverse impact on the financial industry. Year 2004-5 is a glaring example: during that time attempts to forcefully reduce interest rate boomeranged resulting in acute liquidity crisis t...