Staff Reporter :
Bangladesh Bank Governor Ahsan H Mansur announced on Tuesday that the central bank will no longer provide “illegal” liquidity support or other facilities to any bank, including Shariah-based banks.
Speaking at a press conference held in the central bank’s boardroom, he emphasized that depositors have the right to decide where to place their money, and if they choose to withdraw funds from banks linked to the S Alam Group, it is a consequence of the banks’ own actions.
“Depositors withdrawing money from a bank occupied by S Alam is the result of their actions.
We have nothing to do about it because depositors have the right to decide where to put their money,” said Governor Mansur.
Earlier, on August 12, Bangladesh Bank had reduced the special liquidity support previously extended to nine lenders, including five Shariah-based banks.
These banks include National Bank, Padma Bank, ICB Islamic Bank, and six others where the S Alam Group holds a majority stake: Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.
All nine of these banks have been struggling with a liquidity crisis and have relied heavily on the central bank’s special liquidity support to maintain operations.
When questioned about potential actions against irregularities, Governor Mansur stated, “Action will be taken against irregularities, but it will be directed at the individuals involved, not the organizations. Every organization involves many employment issues.”
He also mentioned that measures against weak banks or dissolving their boards are under consideration, but no decisions will be made hastily.
Regarding non-performing loans (NPLs), the governor expressed the bank’s intention to adopt international standards.
“Traders have asked for some time to implement this, claiming it will affect export-import. We have said we will discuss it with the IMF, but there is no doubt that we will adopt international standards,” he said.
When asked about the potential cancellation of the Tk1,000 note, Governor Mansur clarified that Bangladesh Bank has made no such decision and urged the public not to spread rumors about demonetization.
In response to a question about whether notes bearing Bangabandhu Sheikh Mujibur Rahman’s photo will be removed and those with the new governor’s signature will be printed, the governor stated, “New notes will be printed and signed when it is deemed necessary.”