No liquidity crisis, Tk 5,585cr support provided to 7 banks: BB

Business Report :

Bangladesh Bank has assured the public that there is no liquidity crisis in the banking sector, emphasizing that depositors’ funds remain secure.

At a press briefing held Wednesday at the central bank headquarters, Husneara Shikha, Executive Director and Spokesperson of Bangladesh Bank, acknowledged that while a few branches have faced difficulties meeting unusual cash demands, the overall banking sector remains stable.

Bangladesh Bank facilitated a liquidity infusion of Tk 5,585 crore through a mechanism in which 10 financially robust banks lent funds to 7 weaker banks under a guarantee from the central bank.

All deposited money in banks is guaranteed, and there is no reason to panic or make unnecessary withdrawals, the Bangladesh Bank spokesperson said, urging the public to remain calm.

She noted that banks, including those with strong financial standings, cannot immediately return large sums of deposit money, as much of these funds are tied up in term loans and investments.

The Bangladesh Bank spokesperson encouraged depositors to withdraw funds gradually according to their needs, rather than reacting to unfounded fears.