Dhaka, Bangladesh (BBN) – The board of directors of Bangladesh Bank (BB), the country’s central bank, has approved a contingency planning for bank resolution, officials said.
The board has also approved lender of last resort (LOLR) for providing liquidity support to problematic banks for facing their financial crisis, they added.
A proposal in this connection was approved at a board of directors meeting held in the central bank Monday with BB Governor Atiur Rahman in the chair.
“We’ve approved the contingency planning to rescue banks under distress condition,” a BB senior official told BBN in the Dhaka.
He also said different issues including interest rate on liquidity support and the procedures also finalised under the LOLR policy. “It will be used as a guideline for the banks.”
BBN/SSR/AD-30Sept13-9:21 pm (BST)