Terming the commercial banks' interest rates on credits too high', Finance Minister SAMS Kibria has said that their lending rates do not match the country's current low inflation rate.

'Businessmen often express their concern about the high interest rate and I also think that the rates on credits should be much lower since inflation is as low as 3.2 per cent." he said, while speaking at the annual dinner of the Bangladesh Association of Banks (BAB) at Sonargaon Hotel on Wednes-

The function was also addressed by Bangladesh Bank Governor' Dr Mohammad Farashuddin. BAB President and Chairman of United Commercial Bank Ltd (UCBL) Zafar Ahmed Chowdhury and BAB Vice-President and Chairman of Dhaka Bank Ltd Abdul Hal Sarkar

The minister said the banks are free to fix their Interest rates and the government does not slap any control on them in this regard, hoping that the banks would lower their rates to lure more business en-

trepreneurs through a healthy competition.

Kibria also urged the private banks to invest In rural projects and agro-based industries to help add new items to the country's export basket.

He said due to different reform programmes undertaken by the government, discipline has been restored in the banking sector to some extent.

Central bank Governor Farashuddin said that the health of the banking sector was Improving and the private sector banks were performing well.