In a decisive move to bolster national austerity measures, Bangladesh Bank (BB), the nation’s central bank, has issued a formal directive requiring all scheduled banks to significantly reduce their consumption of electricity and fuel. This mandate, aimed at navigating the current global energy volatility and preserving fiscal stability, outlines specific reduction targets that financial institutions must achieve over the coming year.
The central bank’s circular, released to the heads of all commercial banks, stipulates that the banking sector must implement a 20 percent reduction in the consumption of gas and lubricants. Furthermore, banks are required to curtail their electricity usage by 25 percent. This period of heightened austerity is scheduled to run from July through to June of the following year, aligning with the state’s broader strategy to manage energy resources more prudently.
Fiscal Discipline and Non-Transferable Savings
A critical component of this directive is the central bank’s stance on the resulting financial savings. Bangladesh Bank has explicitly stated that any capital saved through these energy-reduction efforts must not be redirected or utilised for expenditure in any other sector. The primary objective is a genuine reduction in operational costs and resource demand, rather than a mere reallocation of budgets. This ensures that the austerity measures contribute directly to the bank’s bottom line and the national goal of reducing energy pressure.
To ensure strict adherence, the central bank has established a rigorous documentation and audit framework. Banks are now mandated to preserve all records, invoices, and data pertaining to their reduced utility usage at their respective head offices. These documents must be readily available for verification by Bangladesh Bank inspection teams, who will conduct on-site visits to monitor compliance.
Key Reduction Targets for Scheduled Banks
The following table outlines the specific austerity targets mandated by the central bank for the upcoming fiscal period:
| Resource Category | Required Reduction Target | Implementation Period | Reporting Requirement |
| Electricity | 25% | July – June (Annual) | Annual Fiscal Report |
| Gas & Lubricants | 20% | July – June (Annual) | Annual Fiscal Report |
| Financial Savings | Non-Transferable | Immediate | Head Office Records |
Transparency and Annual Reporting
Beyond internal record-keeping, transparency remains a cornerstone of this initiative. Banks are required to incorporate detailed data regarding their energy and fuel consumption—and the subsequent reductions achieved—into their Annual Fiscal Reports. This reporting requirement specifically spans the period from December 2022 to December 2023, ensuring that stakeholders and regulators have a clear view of the sector’s contribution to national conservation efforts.
This directive comes at a time when the government is intensifying its focus on foreign exchange reserve management and the mitigation of inflationary pressures. By curbing utility expenses within the influential banking sector, the central bank hopes to set a precedent for corporate responsibility and resource efficiency across the wider economy.