Staff Reporter :
In a bid to stabilize the banking sector, Bangladesh Bank (BB) has issued a Tk 6,585 crore liquidity guarantee to support seven banks facing financial strain. Among these, Islami Bank received Tk 2,095 crore, Social Islami Bank Tk 1,175 crore, First Security Islami Bank Tk 1,000 crore, National Bank Tk 920 crore, Exim Bank Tk 700 crore, Union Bank Tk 400 crore, and Global Islami Bank Tk 295 crore.
Utilizing its credit guarantee scheme, BB aims to address short-term funding needs through interbank lending from 10 financially stable banks rather than printing new currency.
Husneara Shikha, executive director and spokesperson of the BB, announced the move on Thursday, emphasizing that the scheme will be available as long as individual banks continue to require support.
“The central bank is prepared to continue offering this liquidity assistance as necessary, given the specific demands of each institution,” Shikha told reporters yesterday.
So far, 10 financially stable banks have provided funds to the seven banks in need, according to the central bank’s directive.
However, despite this significant injection of liquidity, some banks are still grappling with meeting depositor withdrawals.
Shikha attributed these ongoing issues to “aggressive loan disbursement practices and fraudulent documentation” that occurred during the tenure of the previous Hasina government.
The central bank’s liquidity guarantee scheme is part of broader measures to stabilize the banking sector and restore depositor confidence.
As banks work to address these immediate challenges, BB’s intervention is expected to help maintain short-term stability while the banks adopt more robust risk management practices moving forward.