Bangladesh Bank lends Tk 25,521 crore to banks, financial institutions

Bangladesh Bank has lent around Tk 25,521 crore to commercial banks and financial institutions to meet cash demands on Wednesday.

Shariah-based banks have borrowed around Tk 1500 crore, while other banks and financial institutions have borrowed the rest.

The central bank shared the information in a press release on Thursday.

Banks faced tremendous cash withdrawal pressure on Wednesday when they opened only for four hours after days of closure due to curfew. With lack of money at ATM booths and days of internet shutdown, the demand for cash skyrocketed.

The central bank also informed that the auction of Bangladesh Bank Repo, Assured Repo, Assured Liquidity Support (ALS) for commercial banks and financial institutions, and Islamic Banks Liquidity Facility (IBLF) for Shariah-based banks was held on Wednesday.

In this auction, 14 banks and 2 financial institutions received Tk 5007 crore under the 7-day repo facility, Tk 2370 crore to 9 banks under the 14-day repo facility, Tk 7197 crore to 12 banks and 2 financial institutions under the 28-day repo facility.

Apart from this, Tk 5691 crore was given to 3 banks under 180 days of assured repo, and Tk 3774 crore was given to 11 primary dealer banks under 1 day of assured liquidity support.

Besides, under the Islamic Banks Liquidity Facility for 14 days, Tk 497 crore was given to 1 bank, and Tk 984 crore was given to 5 Islamic banks for 28 days.