Bangladesh Bank on Sunday raised the interest on deposits with non-bank financial institutions (NBFIs) to 9.70% and the lending rate to 12.70%.
The central bank's decision to expand the interest margin in the NBFI sector follows new lending rates which were set for commercial banks.
As per the decision, NBFIs now can add a 2.5% margin with the reference rate, also known as Smart, which stands at 7.20% for collecting deposits.
As a result, the highest deposit rate will now be 9.70%.
Likewise, NBFIs can now add a 5.5% margin with the reference rate of 7.20% for lending.
As such, the highest lending rate will be 12.70%.
The previous interest margins were 2% for deposits and 5% for lending.
The six-month moving average rate of treasury bills, or Smart, was 7.20% in September and the rate will be applicable for October.
In April last year, Bangladesh Bank had set the interest rate on deposits at 7% and loans at 11% for the NBFI sector, which came into effect from July 1.
Previously, some NBFIs offered a maximum of 15% interest against their deposit products.
On Wednesday, Bangladesh Bank had announced a hike in the policy rate -- which is used by the central bank to implement or signal its monetary policy stance -- by 75 basis points to 7.25%.
This made it costlier for banks to borrow from the central bank.
