Author Topic: Liquidity in money market still at comfortable level  (Read 397 times)

Offline Rozina Akter

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Liquidity in money market still at comfortable level
« on: August 05, 2013, 12:35:31 PM »
The liquidity position in the domestic money market remained still in a very comfortable zone mainly due to surplus funds lying in the banks.

The bank-to-non-bank financial institution (NBFI) call money rate hit 9.0 per cent on Sunday, slightly higher than usual, while the bank-to-bank or inter-bank call money rate stood at 8.0 per cent, according to the mid-day report of the Bangladesh Bank (BB).

Bankers said the call money rate rose slightly due to a higher volume of transactions at banks on the occasion of Eid-ul-Fitr.

There was a rush for withdrawal of money from banks on the day. The call money rate was above 7.0 per cent until Thursday.

BB sources said the banks have enough surplus funds.

The call money rate was recorded at 11.51 per cent in August in 2012, according to the BB.

The liquidity position in the domestic money market remained at a comfortable level over the last few months as the call money rate hovered around 7 per cent.

According to the BB call money report, Agrani Bank lent Tk 300 million to NBFIs at a rate of 9.0 per cent while Jananta Bank lent Tk 250 million to NBFIs at the same rate.

Mr Asad Khan, managing director of Prime Finance, told the FE: "Banks usually charge a rate, higher by 1.0 per cent for NBFIs than for banks. So the call money rate for NBFIs stood at 9 per cent and that for banks at 8 per cent."



Source: The Financial Express
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Offline munna99185

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Re: Liquidity in money market still at comfortable level
« Reply #1 on: September 07, 2013, 12:49:27 PM »
There is huge amount of idle money in banks which needs urgent utilization.


Sayed Farrukh Ahmed
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Daffodil International University

Offline Nurul Mohammad Zayed

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Re: Liquidity in money market still at comfortable level
« Reply #2 on: July 09, 2016, 11:23:28 PM »
Liquidity is the ability to meet up the current obligation when it becomes due. 
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Offline Rozina Akter

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Re: Liquidity in money market still at comfortable level
« Reply #3 on: July 11, 2016, 11:30:20 AM »
of course banks have huge liquidity because of not having  lucrative investment opportunity.recently it found that banks have more capital adequacy ratio what they require.
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Offline Nurul Mohammad Zayed

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Re: Liquidity in money market still at comfortable level
« Reply #4 on: July 11, 2016, 10:50:56 PM »
Really?
Nurul Mohammad Zayed
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Faculty of Business & Economics
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Offline Rozina Akter

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Re: Liquidity in money market still at comfortable level
« Reply #5 on: July 12, 2016, 11:38:53 AM »
yes
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Offline Shah Alam Kabir Pramanik

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Re: Liquidity in money market still at comfortable level
« Reply #6 on: July 12, 2016, 05:17:49 PM »
Thanks for Sharing.