Now banks asked to cut electricity, fuel costs

Bangladesh Bank has ordered all banks in the country to reduce electricity and fuel costs.

On Tuesday (July 26), the Banking Regulations and Policy Department of the BB issued a directive in this regard. This instruction comes after the government has ordered all its offices to cut electricity costs by 25 percent.

According to the instructions, banks will have to reduce the cost of fuel by 20 percent in one year.

The banks must reduce 10 percent of the money they allocate for petrol, diesel, octane, gas, and lubricants by December this year.

Another 10 percent of costs should be reduced by the first six months of 2023.

Similarly, the banks should be economical while consuming electricity, as well. The central bank said every bank should cut their power cost by 25 percent in the next one year.

In the remaining six months of the current year and the first six months of the next year, the cost should be reduced at the proportional rate.

Bangladesh Bank also said in the directive that the money saved by the banks by conserving energy and electricity cannot be used in any other sector.

The central bank also said that the information and documents related to cost reduction in these two areas, should be stored at the head office of the bank.

If any inspection team of the central bank visits any commercial bank, those documents should be provided to them.

Apart from this, Bangladesh Bank has informed that the amount of money spent by the banks on the electricity and fuel sector should also be disclosed in their respective annual financial reports.

In that case, this information should be presented in the financial report of the financial year ending in December of the current year and the following December.