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09 December 2024

Bangladesh Bank provides Tk 22,500 crore liquidity support to other banks

Messenger Online

Published: 18:10, 28 November 2024

Bangladesh Bank provides Tk 22,500 crore liquidity support to other banks

Photo: Collected 

The Bangladesh Bank (BB) has provided Tk 22,500 crore in liquidity support to several banks facing a liquidity crunch, said Governor Dr Ahsan H Mansur on Thursday. Speaking at a press conference held at the Jahangir Alam Conference Hall within the BB headquarters, the governor explained the rationale behind the central bank's actions.

Dr Mansur acknowledged that the Bangladesh Bank had temporarily deviated from its policy of not printing money to inject liquidity into the banking sector. He, however, stressed that this move was a temporary measure aimed at stabilising the sector and ensuring financial flows remained uninterrupted. "The tight monetary policy remains intact and our efforts to curb excess liquidity in the market will continue."

Addressing concerns about potential misuse of newly injected funds, the governor said that the current measures do not signify a return to practices seen in the recent past, where money printing led to alleged misappropriations. "This time, we have ensured that funds are allocated transparently and securely, eliminating opportunities for pilferage," Dr Mansur said.

The governor also stressed the central bank's commitment to safeguarding depositors' interests. "The deposit of every person in every bank is safe and secure. We are unwavering in our efforts to maintain depositor confidence," he asserted.

The central bank is providing liquidity support to address the temporary cash shortages in banks, enabling customers to withdraw the required funds, said the Bangladesh Bank Governor. To facilitate this support, the central bank will temporarily print money to meet the provisional needs of different banks, he added.

The governor also reassured the public that all deposits in banks are secure and urged people not to panic or withdraw money unnecessarily. He hinted that the additional liquidity introduced into the market would be managed through various types of bonds to prevent inflationary pressures.
 

Messenger/Tushar