Dhaka, Oct 02 (V7N) – In a significant move, five financially distressed banks are set to receive Tk1,000 crore in liquidity assistance from six stronger banks, with backing from guarantees provided by Bangladesh Bank.

The central bank confirmed on Wednesday that the six robust institutions have already disbursed over Tk1,000 crore to support their struggling counterparts. However, officials declined to provide further comments to the media regarding this development.

On September 22, Bangladesh Bank introduced a special initiative allowing financially sound banks to extend loans to weaker banks for a limited duration as part of a deposit placement strategy.

City Bank is poised to inject Tk100 crore into the ailing First Security Islami Bank as part of this initiative. Participation is voluntary, and the central bank’s guarantee to repay the loans has helped reassure the stronger banks, thereby facilitating this essential liquidity support.

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