Published :Tuesday, 8 December, 2015, Time : 12:00 AM View Count : 17
Interbank
call money market was very active on Monday as the demand for call
money shot up higher following increased business activities. But the
call money rate remained at its low level as most banks are crippled
with a huge amount of surplus liquidity, fund managers said. The
overnight money rate touched its high at 6.00 per cent and low at 4.50
per cent when reverse repo stood at 5.25 per cent and 91-day treasury
bills at 5.28 per cent, central bank officials said. The overall
excess liquidity with commercial banks now more than Tk 1,31000.00
crore, which kept the call money rate at its lowest level since long.
Banks have placed a portion of this liquidity in government
approved-securities at low yield- nearly half of their cost of funds.
The reasons for this accumulated liquidity have mostly been attributed
to contraction in investment activities and subsequent decline in credit
due to political unrest, gas and electricity shortage in industrial
units and high interest rates.