Daffodil International University

Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: Rozina Akter on August 05, 2013, 12:35:31 PM

Title: Liquidity in money market still at comfortable level
Post by: Rozina Akter 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
Title: Re: Liquidity in money market still at comfortable level
Post by: munna99185 on September 07, 2013, 12:49:27 PM
There is huge amount of idle money in banks which needs urgent utilization.


Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University
Title: Re: Liquidity in money market still at comfortable level
Post by: Nurul Mohammad Zayed on July 09, 2016, 11:23:28 PM
Liquidity is the ability to meet up the current obligation when it becomes due. 
Title: Re: Liquidity in money market still at comfortable level
Post by: Rozina Akter 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.
Title: Re: Liquidity in money market still at comfortable level
Post by: Nurul Mohammad Zayed on July 11, 2016, 10:50:56 PM
Really?
Title: Re: Liquidity in money market still at comfortable level
Post by: Rozina Akter on July 12, 2016, 11:38:53 AM
yes
Title: Re: Liquidity in money market still at comfortable level
Post by: Shah Alam Kabir Pramanik on July 12, 2016, 05:17:49 PM
Thanks for Sharing.