Regulatory Shift in Lending
In a significant policy shift, Bangladesh Bank has announced that individual banks can now set their lending rates independently. This change, detailed in a recent circular from the central bank, marks the end of the SMART lending rate mechanism.

Impact on the Banking Sector
The new policy allows banks to adjust their lending rates based on market demand and supply. This flexibility is expected to benefit well-established banks with lower funding costs, enhancing their competitiveness. A deputy managing director from a prominent private commercial bank commented on the potential for offering loans at more competitive rates, highlighting the advantages for top-tier banks.