Dhaka, June 29 -- Bangladesh Bank (BB) has instructed banks to maintain the average gap between loan and deposit interest rates within a specific limit, setting the maximum interest rate spread at 4 percent.

The newly imposed ceiling will be applicable to all types of loans, except for credit cards and consumer credit, reports UNB.

The Banking Regulation and Policy Department (BRPD-1) of the central bank issued a circular in this regard on Monday, sending it to the managing directors and chief executive officers of all banks for immediate execution.

According to the circular, the previous directives regarding the interest rate spread were withdrawn on November 29, 2023, following the introduction of the SMART (Six-Month Moving Average ...