Bangladesh Bank Governor Ahsan H Mansur assured customers of troubled banks that they will eventually get their deposited money, although it may take time. Speaking at the launch of a report by the Microcredit Regulatory Authority (MRA) on the country’s microfinance situation, Mansur attributed the issue to customers’ decisions to deposit funds in these banks.
During the event at Dhaka’s CIRDAP auditorium, Mansur revealed that he had been advising people for the past decade against depositing money in banks controlled by the S Alam Group. However, he stated, many customers still chose to deposit funds in those banks, lured by the higher interest rates offered. He emphasized that efforts to support the affected depositors will be conducted gradually.
“We need time, and it won’t happen immediately,” he said.
The S Alam Group, based in Chattogram, has come under investigation for alleged financial misconduct in the banking sector after the fall of the Awami League government. There have been long-standing allegations that the group’s chairman, Saiful Alam, used influential figures within the Sheikh Hasina administration to gain control of Islami Bank, as well as several other Shariah-based banks. The group is also accused of fraudulently taking large loans from these banks and funneling the money abroad.
Following a change in government, the boards of these banks were overhauled, and Bangladesh Bank intervened, providing liquidity support by facilitating loans from more stable banks. Despite these measures, several banks still struggle to meet customer withdrawal demands.
The governor outlined the central bank’s strategy to resolve the crisis, mentioning the upcoming Bank Resolution Act, which may involve merging some banks. He assured that various steps would be taken, with more actions expected in the coming year.
“I can assure you that you will receive your funds, and there will be compensation, possibly in the form of bonds or other relief,” Mansur concluded.
