Oriental Bank exempted from maintaining CRR, SLR for 2 years
Star Business Report
The government is going to exempt Oriental Bank from maintaining mandatory cash reserve ratio (CRR) and statutory liquidity requirement (SLR) for a period between July 2005 and June 2007 to help the bank overcome its financial crisis.The bank is going to receive the facility for two years following a central bank proposal. According to the Bank Company Law, each commercial bank has to maintain CRR and SLR for the depositors' safety. Each bank has to pay fine if anyone fails to maintain the rules. But if any bank seeks exemption, the government can relax the rules following suggestions from Bangladesh Bank. Meanwhile, many loan defaulters of the beleaguered bank initiated steps to repay their loans. Banking sources said the bank has already recovered around Tk 40 crore following the management takeover by the central bank.
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