Staff Reporter :
At least 10 banks are on the brink of bankruptcy, according to Bangladesh Bank (BB) Governor Ahsan H Mansur.
The central bank is taking measures to prevent these financial institutions from collapsing, he stated during a press conference held on Sunday at Bangladesh Bank.
“We do not want any bank to go bankrupt, but 10 banks are in such a critical condition that bankruptcy is a possibility.
The government is doing everything it can to save them,” said Governor Mansur.
He explained that the central bank is providing assistance to these struggling banks through technical, advisory, and liquidity support, with the aim of preventing closures. “We will give top priority to
safeguarding customer interests,” he added.
Earlier, on 12 August this year, Bangladesh Bank reduced special liquidity support to nine banks, including five Shariah-based banks. This move came at a time when the central bank faced persistent difficulties amid leadership tensions.
The affected banks include National Bank, Padma Bank, ICB Islamic Bank, and six others in which S Alam Group holds a majority stake, such as Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.
These banks have been struggling with liquidity issues for some time and have been operating with the help of the central bank’s special liquidity support.
Addressing rumours about the freezing of bank accounts, Governor Mansur clarified that no institutional accounts, including those of S Alam Group or Salman F Rahman, have been seized.
“So far, only personal accounts have been frozen. We do not want to interfere with any business organisation, as it could disrupt employment and production,” he said.
He reassured that business operations would continue as usual, including the payment of employees’ salaries. His statement was aimed at dispelling misinformation circulating regarding account freezes.
Governor Mansur also cautioned those considering purchasing assets from S Alam Group. “Anyone buying assets from S Alam should do so at their own risk, as there are no guarantees regarding ownership,” he warned.
To reassure depositors, the governor announced that deposit insurance coverage has been increased from Tk100,000 to Tk200,000, protecting 95 per cent of customers in the banking sector.
“No country can guarantee 100 per cent protection for depositors’ money, and we cannot either,” he added. However, he assured that small depositors would receive their money back immediately in the event of a bank failure.
Governor Mansur also informed the press that a task force would be formed within 10 days to restore depositor confidence. “There is no need to panic,” he stressed.
In addition, he highlighted that Bangladesh Bank holds Tk25,000 crore in SME funds, but distribution has been inadequate. Banks have been instructed to identify the obstacles preventing small entrepreneurs from accessing loans.
The central bank remains committed to stabilising the banking sector and ensuring the protection of depositors’ interests as reforms continue.