Bangladeshi Taka. Photo: BBN

Three Troubled Banks Get More BDT 2.65b Liquidity Support

Last updated: November 19, 2024

Dhaka, Bangladesh (BBN) - Three troubled banks received BDT 2.65 billion more as liquidity support from four affluent banks under the central bank’s guarantee scheme, officials said.

Under the arrangement, First Security Islami Bank received BDT 500 million, National Bank BDT 650 million and Exim Bank BDT 1.50 billion from four well off banks to ease their liquidity crunch.  

The four lender banks are Dutch-Bangla Bank, City Bank, Pubali Bank and Eastern Bank.

Earlier on November 14, Exim Bank received BDT 2.0 billion from a lender bank on the same ground.

However, seven cash-hungry banks have so far received Tk 70.50 billion as liquidity support from 10 affluent banks, according to the central bank’s latest statistics.

Currently, a number of banks are struggling to manage a surge of customers rushing to withdraw their funds, driven by heightened panic, bankers said, adding that this increased demand is exacerbating their difficulties, further deepening their challenges.

Massive loan irregularities and mismanagement in the banking sector during the recently deposed Awami League government have left the banks in a vulnerable situation, they noted.

Earlier some cash-hungry banks had sought liquidity support from the central bank immediately to resolve the ongoing crisis.

Some of the crisis-hit banks have already obtained a central-bank guarantee to avail liquidity support from the interbank money market.

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