No Liquidity Crisis, Tk 5,585cr Support for 7 Banks: BB

Bangladesh Bank has reassured the public that there is no liquidity crisis in the banking sector and that depositors' funds remain secure.

At a press briefing on Wednesday at the central bank’s headquarters, Husneara Shikha, Executive Director and Spokesperson for Bangladesh Bank, acknowledged that some branches had faced challenges in meeting unusual cash demands. However, she emphasised that the banking sector as a whole remains stable.

To address liquidity concerns, Bangladesh Bank facilitated a liquidity infusion of Tk 5,585 crore. This was made possible through an arrangement in which 10 financially strong banks lent funds to 7 weaker banks, with the central bank offering a guarantee.

“The funds deposited in banks are fully guaranteed, and there is no cause for panic or unnecessary withdrawals,” the spokesperson stated, urging the public to remain calm. She further explained that banks, including those with solid financial health, cannot immediately return large sums of deposited money, as much of these funds are invested in term loans and other investments.

Husneara Shikha advised depositors to withdraw funds gradually as needed, rather than succumbing to unwarranted fears.