Sun News Desk: Banks will not be able to buy any new vehicle or car till June 2023. At the same time, the country’s banks have been ordered to cut costs.


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On Wednesday (July 27), the Banking Regulations and Policy Department of Bangladesh Bank has sent instructions to the chief executives of all banks.


According to the instructions, the banks will stop buying all types of vehicles as new or replacement.


In the current global economic context, this directive is given in view of the government’s decision to suspend or reduce operational and development expenditure in various sectors.


Banks have been instructed to suspend or reduce expenditure for the remaining six months of 2022 (July-December) and the first six months of 2023 (January-June).


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Even if the purchase of vehicle in the bank is suspended, it can be spent in some urgent cases. However, it is a maximum of 50 percent of the allocated amount. Not more than that. These sectors are entertainment, travel, computer and related electrical equipment, besides furniture and other retail sectors.


The money saved cannot be allocated or spent in any other sector as per the instructions of the central bank.


According to the instructions, the information and documents related to cost reduction should be stored at the head office of the bank. At the same time, during the inspection of the concerned bank, the inspectors of Bangladesh Bank should provide that information according to their needs.


It is said that this instruction has been issued under the powers given in Section 45 of the Bank Companies Act, 1991.


Sun News/NK

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