Bangladesh Bank puts moratorium on buying vehicles for commercial banks

Bangladesh Bank has told commercial banks to put a moratorium on vehicle purchases until June 2023.

The central bank's order was conveyed to the Chief Executives of all banks by the Banking Regulations and Policy Department on Wednesday.

It says the purchase of new or replacement vehicles by the banks will be stopped.

In the current global economic context, this directive is issued in line with the government’s decision to suspend or trim operational and development expenditures of various sectors.

Even if the purchases of vehicles are suspended, emergency cases could be dealt with, spending not more than 50 percent of the allocated amount.

Those exceptional cases are: refreshment expenses, urgent travel, purchase of computer and related electrical equipment, furniture, etcetera.

The money saved cannot be allocated or spent in any other sector, the BB directives said.

Information and documents related to cost mitigation should be stored at the head office of the respective banks. Then, the info could be provided to any inspecting team especially of the Bangladesh Bank, as they ask for it.