No car purchase by banks in next one year

Amid a fresh round of belt-tightening by the government, the Bangladesh Bank on Wednesday instructed banks not to buy new cars until June 2023.

Besides, banks' spending for hospitality, travel, furniture and stationery has been slashed by 50% due to the global economic situation.

Banks are not allowed to exhaust the savings accumulated by vehicle purchase postponement and 50% spending cut in other sectors either, according to the central bank notification on Wednesday.

Earlier, banks were instructed to reduce power and energy costs in line with the government austerity measures.

The Bangladesh Bank also said that information and documents related to cost reduction must be stored at bank headquarters. If the inspection team of the central bank visits the bank and wants to see the documents, it must be provided.

The central bank also noted that banks must disclose their car purchase and other expenses in the annual financial report.

In that case, these expenses for July-December this year will have to be presented in the financial report in December 2022, and expenses in January-June of the next year in the financial statement in December 2023.