Dhaka, Bangladesh (BBN) - Seven troubled banks have so far received BDT 65.85 billion as liquidity support from 10 affluent banks under the central bank’s guarantee scheme, officials said.
Earlier some cash-hungry banks had sought liquidity support from the Bangladesh Bank (BB) 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.
As part of the arrangement, Islami Bank received BDT 20.96 billion, Social Islami Bank BDT 11.75 billion, First Security Islami Bank BDT 10 billion, National Bank BDT 9.20 billion, Exim Bank BDT 7.0 billion, Union Bank BDT 4.0 billion, and Global Islami Bank BDT 2.95 billion from 10 well off banks.
Currently, a section of banks has faced difficulties to handle the customers rushing to withdraw their money out of heightened panic, which ultimately further widens their woes, according to bankers.
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 added.
On the other hand, Sonali Bank provided BDT 30 billion, City Bank BDT 12.95 billion, Pubali Bank BDT 5.0 billion, Shahjalal Islami Bank BDT 4.0 billion, Dutch-Bangla Bank BDT 4.0 billion, BRAC Bank BDT 3.0 billion, Dhaka Bank BDT 2.50 billion, Mutual Trust Bank BDT 2.20 billion, Eastern Bank BDT 2.0 billion and Bengal Commercial Bank BDT 200 million to the financially weak banks.
The officials also said affluent banks have provided only BDT 10 billion to the troubled banks after a fresh instruction, issued by Bangladesh Bank Governor Dr Ahsan H. Mansur on November 11.
On that day, the central bank governor asked 17 well off banks to extend their liquidity support to cash-hungry banks for ensuring stability in the country's banking system.
Earlier seven crisis-hit banks had received BDT 55.85 billion as liquidity from nine well-off banks, according to the BB officials.