6 strong banks start supporting 5 weak banks to cope up liquidity crisis

Bangladesh Bank said that 6 strong banks have provided more than 1000 crores of liquidity to 5 weak banks of the country.

At least a dozen banks have weakened over the past decade and a half due to irregularities, corruption, looting and offshore smuggling. The regulatory agency decided to provide financial assistance from Sabal Bank to keep them alive.

In continuation of this, City, Mutual Trust, Dutch Bangla, Eastern Bank, Bengal Bank and Sonali Bank have given assistance of 1 thousand crore rupees to Islami Bank, First Security, Exim, National and Social Islami Bank on Wednesday. 7 institutions have signed guarantee agreement with Bangladesh Bank to get assistance in this process.

Bangladesh Bank Spokesperson Husne Ara Shikha said that as a result of such an initiative of the central bank, customers‍‍` trust in weak banks will return again.

It should be noted that on September 8, the Governor of Bangladesh Bank, Ahsan H. Mansoor, said that at least 10 banks in the country have gone bankrupt due to fraud and looting. The interim government is trying to save these banks. At that time, the central bank decided to make the deposit insurance scheme Tk 2 lakh instead of Tk 1 lakh to restore the trust of the customers.

However, Governor Ahsan H. Mansoor said that 70 thousand crore rupees had gone out of the banking sector even though he did not mention the names of the 10 banks that were on the verge of bankruptcy. Of this, about 30 thousand rupees have returned.