Three comparatively stronger banks have loaned Tk 16.40 billion to six weak banks to help them deal with their liquidity crisis.
First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, National Bank, and Exim Bank received support from Sonali Bank, Mutual Trust Bank, and Dutch Bangladesh Bank.
On Thursday, we transferred the money after receiving approval from Bangladesh Bank. Islami Bank has also requested similar liquidity support.
Director and Bangladesh Bank spokesperson Shahriar Siddiqui told bdnews2014.com, “These weak banks have received liquidity assistance in response to their petitions. Following the review of their applications, additional banks will receive this assistance in the future.
The problem of irregularities in the banking industry has gained attention since the change of government. Charges specifically point to the Chattogram-based S Alam Group for embezzling loans from the Islamic banks under their control.
All of the banks that are receiving liquidity support already have administrators appointed by Bangladesh Bank. The S Alam Group controlled the other five banks, with the exception of Exim Bank.
A representative from Bangladesh Bank stated that “multiple banks are experiencing a liquidity crisis.” These weak banks have already received cash from ten strong banks. Customers shouldn’t have to leave banks empty-handed, we hope.
A student-led mass movement overthrew the Awami League government on August 5, leading to a notable change in the financial sector’s leadership. Initially, they attempted to “liberate” Islami Bank. Subsequently, similar campaigns extended to other banks.
Abdur Rouf Tarukder, the governor of Bangladesh Bank, the deputy governor, the head of the Bangladesh Financial Intelligence Unit, and the policy advisor all resigned in response to the protests.
In August, Ahsan H. Mansur assumed leadership as the central bank’s new governor. Illegal cash transfers from Bangladesh Bank to Islamic Sharia-based banks have stopped since he took office.
Islamic banks experienced a liquidity crisis as a result. Customers of First Security Islami Bank were unable to withdraw Tk 20,000 at one point due to the dire circumstances.
Union Bank and Global Islami Bank experienced similar circumstances. A liquidity crisis is also affecting Bangladesh Commerce Bank.
Under the given conditions, Governor Mansur authorized cash loans to weaker banks from stronger banks. Then, ten more powerful banks consented to make the loans.
WHO IS GIVING HOW MUCH?
First Security Islami Bank received Tk 3.7 billion from Sonali Bank.
Social Islami Bank received a total of Tk 3 billion. Sonali Bank contributed Tk 2 billion of this, while Dutch Bangla Bank contributed the remaining Tk 1 billion.
Sonali Bank gave Tk 1.5 billion to Union Bank.
Global Islami Bank received Tk 950 million. Sonali Bank contributed Tk 750 million of this, while Mutual Trust Bank contributed Tk 200 million.
Tk 3.20 billion was given to the National Bank. Sonali Bank contributed Tk 2.2 billion, and Dutch Bangla Bank contributed Tk 1 billion of this total.
Sonali Bank supplied all of the Tk 4 billion that Exim Bank received.
