{"id":162752,"date":"2025-11-04T18:11:09","date_gmt":"2025-11-04T18:11:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/162752\/"},"modified":"2025-11-04T18:11:09","modified_gmt":"2025-11-04T18:11:09","slug":"private-sector-credit-growth-drops-to-four-year-low-at-6-29-in-september","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/162752\/","title":{"rendered":"Private sector credit growth drops to four-year low at 6.29% in September"},"content":{"rendered":"

Economists attribute this decline mainly to stagnation in new business activities and a drop in private investment <\/p>\n

\n TBS Report<\/strong>\n <\/p>\n

\n 03 November, 2025, 02:55 pm <\/p>\n

\n Last modified: 04 November, 2025, 09:44 am <\/p>\n

\n Representational image: Photo: Collected<\/p>\n

“> <\/p>\n

\"Representational<\/p>\n

\n Representational image: Photo: Collected <\/p>\n

Private sector credit growth in Bangladesh fell to 6.29% in September, marking the lowest level in four years, according to the latest data from Bangladesh Bank.<\/strong><\/p>\n

TBS Infograph<\/p>\n

“> <\/p>\n

\"TBS<\/p>\n

TBS Infograph<\/p>\n

The slowdown has been consistent since 5 August 2024, as private sector lending continues to lose momentum.<\/p>\n

The central bank data shows a consistent monthly decline \u2014 6.35% in August, 6.52 % in July, 6.40% in June, 7.17% in May, and 7.5% in April.<\/p>\n


\n \"The
\n Keep updated, follow The Business Standard’s Google news channel
\n <\/a><\/p>\n

Economists attribute this decline mainly to stagnation in new business activities and a drop in private investment.<\/p>\n

Foreign investors consider the overall stability of a country before investing, economists noted.\u00a0
Although the recent improvement in foreign exchange reserves is a positive sign, political uncertainty remains a key concern, they added.\u00a0<\/p>\n

A senior official at Bangladesh Bank said that private investment is likely to rebound once the country’s political situation stabilises after the election and a new government takes office.<\/p>\n

“When new investments begin, the import of capital machinery will rise, leading to higher demand for bank loans and a recovery in credit growth,” the official added.<\/p>\n

Meanwhile, the opening of letters of credit (LCs) for importing capital machinery has also declined, reflecting subdued business confidence and investment sentiment.<\/p>\n

Business leaders have stressed the need to foster a more investment-friendly environment and lower high lending rates, warning that the current interest rates discourage entrepreneurs from borrowing to expand their operations.<\/p>\n

Without lowering the cost of borrowing and improving the overall business climate, it will be difficult to revive private investment and restore credit growth, said business representatives.<\/p>\n","protected":false},"excerpt":{"rendered":"Economists attribute this decline mainly to stagnation in new business activities and a drop in private investment TBS…\n","protected":false},"author":2,"featured_media":162753,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[11641,94198,53145,79,66415,94196,30099,94191,179,18,94194,94193,19,94197,17,94199,94195,94192,94190,78323],"class_list":{"0":"post-162752","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bangladesh-bank","9":"tag-bangladesh-business-climate","10":"tag-bangladesh-economy","11":"tag-business","12":"tag-business-confidence","13":"tag-capital-machinery-imports","14":"tag-cost-of-borrowing","15":"tag-economic-uncertainty-bangladesh","16":"tag-economy","17":"tag-eire","18":"tag-foreign-exchange-reserves","19":"tag-high-lending-rates","20":"tag-ie","21":"tag-investment-friendly-environment","22":"tag-ireland","23":"tag-low-credit-growth","24":"tag-political-uncertainty-impact-on-economy","25":"tag-private-investment-bangladesh","26":"tag-private-sector-credit-growth","27":"tag-the-business-standard"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115492781296525820","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/162752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=162752"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/162752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/162753"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=162752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=162752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=162752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}