Central Bank of Bangladesh

BB Suspends Special Liquidity Support for Banks

Last updated: August 20, 2024

Dhaka, Bangladesh (BBN) - The central bank has suspended special liquidity support for some Shariah-based banks, Bangladesh Bank (BB) Governor Ahsan H Mansur said on Tuesday.

"If depositors withdraw money from a bank occupied by S Alam, it 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,” the governor said in a press conference after a meeting with a delegation of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI).

He also said the banking regulator has already capped lending activities of six Shariah-based banks.

Earlier on Monday, the central bank imposed restrictions on giving fresh loans of six banks linked to S Alam Group amid allegations of wrongdoing.

The banks are Islami Bank, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.

At the meeting, the FBCCI team demanded punishment of the people who scammed and looted banks in the name of doing business.

BBN/SSR/AD

Bangladesh Business News
BBN is the country's oldest Business News and Analysis platform, run by veteran business journalist and analyst that you can rely upon.
© Copyright 2024 - BBN - All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram