Dhaka, Jun 14 (V7N) – Bangladesh Bank has provided Tk 2,500 crore in special liquidity support to Islami Bank Bangladesh PLC in an effort to address the bank's ongoing cash shortage and restore confidence among depositors.
The assistance was approved by the central bank on Sunday following a request from the bank for emergency liquidity support.
According to banking sector sources, uncertainty surrounding the appointment of a new chairman at Islami Bank triggered unrest after Eid, leading to a series of protest programs organized under the banner of the Conscious Customer Forum. The protests reportedly fueled concerns among depositors, prompting a significant number of customers to withdraw their savings from the bank.
The surge in withdrawals placed considerable pressure on the bank's liquidity position, making it difficult to meet customer demands for cash withdrawals. Sources also indicated that the bank struggled to maintain the Cash Reserve Ratio (CRR) requirement prescribed by the central bank.
Facing mounting pressure, Islami Bank reportedly applied to Bangladesh Bank last week seeking Tk 10,000 crore in liquidity assistance. In response, the central bank approved an initial support package of Tk 2,500 crore to help stabilize the situation and ensure uninterrupted banking services.
Earlier, Bangladesh Bank Governor Mustafa Murshedul Islam hinted at possible liquidity support during a post-budget press conference held on Friday. At the briefing, he expressed confidence that the challenges facing Islami Bank would be resolved soon and assured depositors that they would not face difficulties in withdrawing their funds.
Banking analysts say the central bank's intervention is aimed at restoring depositor confidence and maintaining stability in the country's financial sector. They note that ensuring smooth liquidity flow remains critical to preventing further pressure on the banking system.
Officials are expected to continue monitoring the situation closely as Islami Bank works to rebuild customer confidence and normalize its operations in the coming weeks.
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