BB disburses Tk 40b as liquidity support to five Islami banks 


FE Team | Published: December 07, 2022 18:27:36 | Updated: December 25, 2022 18:02:51


BB disburses Tk 40b as liquidity support to five Islami banks 

Bangladesh Bank has disbursed Tk 40.0 billion as liquidity support to five Islami banks to meet the ongoing liquidity crisis, sources in the central bank said. 

Five Islami banks had earlier applied to the Bangladesh Bank, seeking liquidity support. They are Islami Bank Bangladesh Limited, Union Bank, Social Islami Bank, First Security Islami Bank and Global Islami Bank. The five banks belong to S. Alam group. 

Central bank’s spokesperson Mezbaul Haque on Wednesday said that it was decided to pay Tk 40.0 billion against Sukuk bond facility. 

Islami banks can take more money, if required, under Sukuk bond facility, he said. 

While the BB Governor and Managing Directors of five Islami banks have denied the liquidity crisis in their respective banks, the liquidity shortage is still hampering the daily transaction, sources said. 

On Monday, the Islami Bank Bangladesh Ltd’s deposits fell to Tk 1.46 trillion. On October 31, the deposit of the bank was Tk 1.53 trillion. 

Earlier, IBBL had been lending money to all Islami banks for so long. But, IBBL is now going to other banks for money, a deputy managing director of the bank said. 

After the recent loan scam over Tk 340.0 billion, a group of people withdrew their deposits from the bank, which is also another reason for the liquidity crisis, he said preferring anonymity. 

In this context, five Islami banks have suddenly faced a liquidity crisis and are struggling to meet demand for regular transactions. Officials say the central bank has taken the special initiative to lend money to these banks to keep them afloat.  

Bangladesh Bank has launched an investigation to look into the scam. The High Court separately has asked for clarification from S Alam group over the scam. 

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