Four weak banks get Tk 945cr support

Four financially troubled banks have got Tk 945 crore in liquidity support from several stronger banks, backed by guarantees from Bangladesh Bank.

The banks are First Security Islami Bank, Social Islami Bank, Global Islami Bank and National Bank.

Husne Ara Shikha, executive director and spokesperson of Bangladesh Bank, confirmed the matter on Wednesday (October 2).

According to the central bank, three financially sound institutions-City Bank, Dutch Bangla Bank Ltd and Mutual Trust Bank-have already given Tk 300 crore to First Security Islami Bank. City Bank and Mutual Trust Bank have already given Tk 300 crore to Social Islami Bank.

On the other hand, National Bank has received liquidity support from Bengal Commerce Bank, Mutual Trust Bank and City Bank. 

However, the spokesman did not say how much money was received. 

Apart from this, Global Islami Bank has received liquidity support as per demand from Eastern Bank, Mutual Trust Bank and Dutch Bangla Bank.

On September 22, Bangladesh Bank announced a special initiative where financially robust banks would extend loans to weaker banks for a limited period as part of a deposit placement strategy.

While no bank is being forced to participate, the central bank’s guarantee to repay the loans has reassured stronger banks, encouraging them to provide this crucial liquidity support.