The inter-bank call money market saw a slight rise yesterday, the last working day before the Eid-ul-Azha holidays, but it stayed within single digit due to excess liquidity at banks.
The highest rate of interest for banks in the call money market yesterday was 9 percent, up from 8 percent on Thursday, according to Bangladesh Bank. As for non-bank financial institutions, it was 10 percent against 9 percent the previous day. The total transacted amount was more than Tk 8,363 crore.
“As the banks have excess liquidity, the rate of interest did not go up much in the call money market this time,” said an official of NCC Bank.
At the end of July, the banks had excess liquidity of Tk 82,344 crore, which was Tk 79,441 crore the previous month. For more than one year now, the banks’ excess liquidity has been on the rise almost every month due to low investment demand.
A central bank official said the pressure to draw money from BB on the eve of Eid was low in comparison to last year. BB estimated that about Tk 22,000 crore would be withdrawn by banks before the Eid shutdown, but the actual withdrawal was Tk 15,500 crore.
Last year, banks withdrew Tk 17,000 crore from the individual accounts they maintain with the central bank.
Meanwhile, an official of Al Arafah Bank’s Old Dhaka branch told The Daily Star that customers were waiting in front of the branch even before the banking hours started, while many queued way past the 4pm shutdown time.
Normally, the branch’s daily transactions hovered around Tk 2 crore, but it hit Tk 3.5 crore yesterday.
Of the amount, withdrawals alone accounted for Tk 3 crore, the majority of which were by corporate clients to pay salaries and allowances to their staff.
The highest rate of interest for banks in the call money market yesterday was 9 percent, up from 8 percent on Thursday, according to Bangladesh Bank. As for non-bank financial institutions, it was 10 percent against 9 percent the previous day. The total transacted amount was more than Tk 8,363 crore.
“As the banks have excess liquidity, the rate of interest did not go up much in the call money market this time,” said an official of NCC Bank.
At the end of July, the banks had excess liquidity of Tk 82,344 crore, which was Tk 79,441 crore the previous month. For more than one year now, the banks’ excess liquidity has been on the rise almost every month due to low investment demand.
A central bank official said the pressure to draw money from BB on the eve of Eid was low in comparison to last year. BB estimated that about Tk 22,000 crore would be withdrawn by banks before the Eid shutdown, but the actual withdrawal was Tk 15,500 crore.
Last year, banks withdrew Tk 17,000 crore from the individual accounts they maintain with the central bank.
Meanwhile, an official of Al Arafah Bank’s Old Dhaka branch told The Daily Star that customers were waiting in front of the branch even before the banking hours started, while many queued way past the 4pm shutdown time.
Normally, the branch’s daily transactions hovered around Tk 2 crore, but it hit Tk 3.5 crore yesterday.
Of the amount, withdrawals alone accounted for Tk 3 crore, the majority of which were by corporate clients to pay salaries and allowances to their staff.
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