BB’s constitutional status proposal left undiscussed

TIMES Report
2 Min Read
Bangladesh Bank. Photo: Collected

The draft of the Bangladesh Bank Order 2025, which includes a proposal to designate the central bank as a constitutional body, was on the agenda for discussion at the 443rd board meeting on Tuesday. However, it was ultimately left undiscussed. Board members suggested that the draft be rewritten in a “simpler and more precise” manner before further deliberations.

A board member, speaking on condition of anonymity, confirmed to TIMES of Bangladesh that although the draft was scheduled for discussion, it was not addressed due to the incompleteness of the drafting. The board recommended revising the provisions for clarity and precision.

Meanwhile, the meeting, chaired by Governor Ahsan H Mansur, approved the institution’s financial statement, which revealed a historic net profit for FY25. According to the approved figures, Bangladesh Bank recorded a net profit of nearly Tk 23,000 crore, setting a new record. This marked a sharp 52 percent increase from the Tk 15,100 crore posted in FY24 and more than double the Tk 10,750 crore achieved in FY23.

Insiders attribute this surge largely to frequent hikes in the policy interest rate and the increased reliance of commercial banks on the central bank’s liquidity support facilities. A senior central banker, speaking on condition of anonymity, highlighted that income from repo and special repo loans extended to several banks significantly contributed to the profit growth.

Additionally, one official pointed out that in the aftermath of last year’s political unrest and the subsequent power transition, the policy rate was raised from 8 percent to 10 percent to combat inflationary pressures. This move, the official stated, played a key role in boosting the central bank’s earnings.

Analysts note that amidst the ongoing economic slowdown, commercial banks’ growing dependence on Bangladesh Bank’s liquidity “windows” has been another crucial factor behind the record-breaking profit.

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