In a significant pass to address the ongoing liquidity crisis in Bangladesh’s banking sector, three financially stable banks possess prolonged loan make stronger to their weaker counterparts.
This initiative is geared in opposition to bolstering the soundness of the monetary system, mentioned Bangladesh Financial institution Spokesperson Husne Ara Shikha on Wednesday (2 October).
In accordance with the central monetary institution, Metropolis Financial institution, Mutual Have faith Financial institution (MTBL), and Bengal Industrial Financial institution possess collectively offered Tk945 crore in liquidity make stronger to First Security Islami Financial institution (FSIBL), World Islami Financial institution and Nationwide Financial institution.
FSIBL is made up our minds to receive some Tk300 crore, with Metropolis Financial institution, MTBL, and Dutch-Bangla Financial institution Miniature (DBBL) acting as the donating banks.
Social Islami Financial institution Miniature (SIBL) will receive a identical quantity from Metropolis Financial institution and MTBL.
Moreover, World Islami Financial institution and Nationwide Financial institution possess also received their respective allocations from Eastern Financial institution Miniature (EBL) and the previously mentioned donor banks. Nationwide Financial institution has received contributions from Metropolis Financial institution, MTBL and Bengal Industrial Financial institution.
The liquidity injection has been initiated to make stronger these banks in overcoming the ongoing cash crunch. Some banks are quiet in the process of finishing major documentation sooner than extending further make stronger to diversified affected institutions.
Ongoing liquidity crisis
The liquidity crisis in Bangladesh’s banking sector has been a growing bother for regulators.
On 11 August, the Bangladesh Financial institution imposed a limit on cash withdrawals from banks to retain an eye on the crisis successfully. Nevertheless, the restriction was once lifted on 7 September, but quite lots of banks proceed to face liquidity shortfalls.
On 24 September, the Bangladesh Financial institution revealed the most contemporary accounts of 9 interior most sector banks operating with the central monetary institution, revealing a deficit that had surged to Tk18,167 crore.
The banks listed integrated First Security Islami, Social Islami, Nationwide, Union, Islami Financial institution Bangladesh, Bangladesh Commerce, Padma, Exim and ICB Islamic Financial institution.
This crisis has brought on swift motion from every regulators and financially stable banks, emphasising the need for persisted monitoring and focused make stronger to be definite the soundness of the banking sector.
