B Mirror Desk : Since the decision to base interest rates on the market, the spread—the difference in interest rates between loans and deposits in the country’s banking sector—has been rapidly increasing. The latest data from Bangladesh Bank shows that the average spread in March 2025 was 5.87 percent, whereas in March 2023 it was 2.96 percent. However, a lot of banks are not adhering to the central bank’s order to limit it at 4 percent.

When it comes to raising their margins and making money, foreign banks—and some private banks in particular—are setting the standard. The spreads for Standard Chartered Bank and Dutch-Bangla Bank have both risen to 9.69 and 9.73 percent, respectively. These banks charge interest rates of 12 percent or higher even if they pay deposits with interest rates of less than 1 to 2 percent.

In the event of weak and irregular banks, the situation is reversed. Despite their efforts to entice deposits by offering interest rates of 12–14 percent, these banks are losing the trust of their clientele. In comparatively safe banks, customers are more interested in holding deposits at lower interest rates. Weak banks are consequently suffering losses.

According to a Bangladesh Bank representative, the affected bank is notified if the spread surpasses 4 percent. In actuality, though, a lot of banks are disregarding the directives. Due to the resulting market imbalance, many good entrepreneurs are becoming defaulters and are unable to obtain loans.

However, a significant portion of bank loans have now defaulted and become unproductive. Over Tk 345,000 crore in defaulted loans were outstanding at the end of 2024, representing roughly 20% of all loans disbursed. Analysts estimate that the real default rate is significantly higher, near 30 percent.

Even at 14 percent interest, it is currently hard to acquire a loan, according to former FBCCI President Mir Nasir Hossain. Furthermore, it has become impossible to conduct business due to the rise in production costs and the dollar exchange rate. The issue has been made more difficult by the gas and energy crises.

Even though respectable institutions are making money right now, regular depositors, company owners, and entrepreneurs are losing out. To bring the market back into equilibrium, economists and business executives think the central bank needs to implement stricter and more efficient policy measures. If not, this financial sector inequality will seriously jeopardize the stability of the nation’s economy.