DHAKA, June 14, (V7N) – Bangladesh Bank (BB) has provided Tk 2,500 crore in special liquidity support to Islami Bank Bangladesh PLC to help the country's largest Shariah-based lender overcome an acute cash shortage caused by heavy deposit withdrawals. The central bank's intervention is expected to ease pressure on the bank's cash position and help restore confidence among depositors.
Bangladesh Bank Executive Director and spokesperson Arief Hussain Khan confirmed the development to BSS. According to central bank and bank officials, Islami Bank had sought Tk 10,000 crore in liquidity assistance from Bangladesh Bank last week. Officials said the Tk 2,500 crore released today is the first tranche of the requested support package.
Bangladesh Bank Governor Md Mostaqur Rahman had earlier indicated that the central bank was prepared to extend liquidity assistance to the bank if necessary. Speaking at a post-budget press conference on June 12, the governor said, "The crisis at Islami Bank will be resolved soon. Depositors will not face difficulties in withdrawing their money. If necessary, emergency liquidity support will be provided."
The liquidity crunch at Islami Bank followed heavy deposit withdrawals, which put pressure on the bank's cash position. As the country's largest Shariah-based lender, the bank's stability is considered important for the overall health of Bangladesh's banking sector.
Banking sector analysts said the move reflects Bangladesh Bank's commitment to maintaining financial stability and protecting depositors' interests while ensuring smooth operations of one of the country's largest private commercial banks. The central bank's support is expected to help the bank meet its immediate cash obligations and stem further deposit outflows.
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