Bangladesh Bank Increases ADR by 2% to Attract Investments

Bangladesh Bank (BB) has issued a circular enhancing the banks’ advance to deposit ratio (ADR) by 2% to increase credit supply and attract more investments, as Bangladesh faces tough times due to the COVID-19 pandemic. 

According to the circular, Investment-Deposit Ratio (IDR) for Islamic banks will be enhanced to 92% from 90%, while the ADR of conventional banks will be increased from 85% to 87%, effective the 15th of April 2020.

Bangladesh’s banking sector praised BB’s latest decision, stating that the measure would assist in the implementation of the bailout package unveiled to uplift businesses impacted due to the pandemic. Ali Reza Iftekhar, Chairman of the Ass...