Dhaka, Apr 25 (UNB) - Bangladesh Bank on Wednesday directed the managing directors and chief executives of all scheduled banks in the country to cut credit to the unproductive (consumer loan) sector to ensure increased credit flow in the productive sectors.

“The credit growth of the consumer loans can no way be higher than the average credit growth of the bank’s total credit,” the central bank said in a circular of the Banking Rules and Policy Department (BRPD).

The circular said it has been noticed that the flow of consumer loans in different banks has increased shrinking the credit flow in the productive sector. “It might have adverse impact on the country’s economy.”  

It is essential to increase credit flow in the productive sector to bring about pace in the economy and expedite overall economic growth, the circular added.