Bangladesh Bank provides special assistance of Tk 2,500 crore to Islami Bank in liquidity crisis

Bangladesh Bank has provided special loan assistance of Tk 2,500 crore to Islami Bank Bangladesh Limited to deal with the liquidity crisis.

The central bank approved this assistance on Sunday (June 14). This urgent step has been taken due to the recent economic instability in the bank and the pressure on customers to withdraw their deposits.

According to sources, the internal instability of the bank arose after Eid centered on the appointment of a new chairman of Islami Bank. As a result, a large number of customers withdrew their deposits, resulting in the bank facing a liquidity crisis.

The bank recently sought assistance of about Tk 10,000 crore from Bangladesh Bank to deal with the situation. Out of this, the central bank has approved special assistance of Tk 2,500 crore for the time being.

Islami Bank had previously failed to meet the prescribed Cash Reserve Ratio (CRR). In addition, the institution faced some pressure to pay money according to customer demands.

This assistance from Bangladesh Bank is expected to normalize the bank's ongoing liquidity crisis to some extent.