Banks can’t replace cars issued to officers before 8yrs

The central bank has directed all scheduled banks not to replace vehicles issued to their chairmen and chief executive officers before at least eight years.

"Banks would be able to replace cars and other vehicles used by their chairmen and chief executive officers and the lenders if they are at least eight years old," said a BB circular issued on Wednesday.

The directive comes in a bid to cut operating expenses by avoiding high-value expenses and purchases of luxurious cars.

In 2019, the Bangladesh Bank allowed banks to replace their cars and other vehicles dedicated to their chairmen and CEOs with new ones after they age at least five years.

Now, the vehicles would have to be at least eight years old, said the BB.