Three cash-strapped banks get Tk 2.65bn more from four stable banks

Four stable banks providing the aid are – Dutch Bangla, City, Eastern, and Pubali

Four stable banks have pumped Tk 2.65 billion more into three weak banks to help them get over liquidity shortages.

The strong banks that injected the funds are Dutch Bangla Bank, City Bank, Eastern Bank, and Pubali Bank, Bangladesh Bank spokesperson Husne Ara Shikha said on Tuesday.

Earlier, 10 stable banks provided Tk 65.85 billion in liquidity support to seven weak banks until last week.

The three banks that received the new cash aid are National Bank, EXIM Bank, and First Security Islami Bank, a senior central bank official told bdnews24.com.

On Nov 11, Governor Ahsan H Mansur had a meeting with the managing directors of 17 banks to discuss the state of the banking sector.

He instructed stable banks, particularly those with relatively strong deposit levels, to continue supporting weak banks.

After the shift in power, the banks began facing a liquidity crisis after the halt of unlawful cash disbursements to Shariah-based banks by Bangladesh Bank.

The situation was such that customers could not withdraw even Tk 20,000.

In light of this, the governor authorised weak banks to borrow cash from strong banks. Subsequently, 10 stable banks agreed to provide liquidity support to the weaker banks.

Shikha told bdnews24.com that the central bank would continue to provide liquidity support to the vulnerable.

“The governor has put the interests of the depositors first. More funds will be provided in phases.”