Staff Reporter :
Bangladesh Bank (BB) has injected Tk 52,500 crore in liquidity support to 12 financially troubled banks, marking one of the largest such interventions in the country’s financial history.
Data released on Saturday reveals that this substantial assistance forms part of a broader strategy aimed at stabilising the fragile banking sector, which also includes plans to merge several weak institutions.
Of the total, Tk 33,000 crore was provided as demand loans to 10 banks to help meet depositor withdrawals and ease short-term liquidity pressures. An additional Tk 19,000 crore was extended by converting existing current account deficits into demand loans across nine banks, offering them vital financial relief.
Among the recipients are First Security Islami Bank, Social Islami Bank, National Bank, EXIM Bank, Global Islami Bank, Islami Bank Bangladesh, AB Bank, Bangladesh Commerce Bank, Investment Corporation of Bangladesh, Basic Bank, and Padma Bank. First Security Islami Bank received the largest share, amounting to Tk 14,200 crore.
Bangladesh Bank Governor Dr Ahsan H Mansur confirmed that the central bank plans to merge five private Islamic banks in the coming weeks, regardless of the upcoming national elections.
“This is an ongoing process, and we expect the next government to maintain these reforms,” he said.
Dr Mansur added that liquidity support had already been extended to these banks to stabilise their operations ahead of the mergers. Six banks identified as vulnerable due to significant irregularities and loan fraud are slated for consolidation by July.
“These banks will be temporarily placed under government management before their shares are transferred to local and international strategic investors following restructuring,” he explained.
The unprecedented scale of this support highlights the severity of challenges confronting Bangladesh’s banking system, as authorities work swiftly to restore public confidence and ensure the sector continues to underpin economic growth.
