Bangladesh Bank says it fully guarantees customers’ deposits at IBBL

Bangladesh Bank has said the depositors of Islami Bank Bangladesh Limited (IBBL) have nothing to worry about regarding their money.

Central bank’s Executive Director and Spokesperson Md. Mezbaul Haque came up with the statement in his first interactions with the press as a spokesman, according to UNB.

Before making the statement, the central bank spokesman held a meeting with the Association of Bankers Bangladesh (ABB) at Jahangir Alam Conference Hall of Bangladesh Bank on Sunday afternoon.

'Those who have deposited money in this bank are completely safe. Bangladesh Bank guarantees their deposits. But there are many rumours in the market. A good institution cannot be hindered by rumours or otherwise," he said.

“Bangladesh Bank fully guarantees customers' deposits at IBBL. However, there is an ongoing investigation into whether there was any irregularity or corruption at the bank.”

“We can say what happened only after investigation,” he added.

In reply to a question on customers withdrawing deposits from Islami Bank, as IBBL is popularly known, he said that the crisis of trust has passed. Depositors are putting money back into the bank.

Besides, the trade deficit has come down a lot, and the foreign exchange crisis will go soon.

Regarding ABB's claim that the maximum interest rate of 12 per cent on consumer loans has been verbally approved, he said: "We have not issued any circular in this regard."

“Consumer loan interest rates are the same as in earlier rules. But if a bank talks about 12 per cent then it is advance preparation. If so, we will issue a circular.”

The meeting discussed several issues including the facilitation of importers' letters of credit (LCs) to ensure the supply of essential commodities during the upcoming Ramadan.

“This has been discussed with the MDs and CEOs of the banks. Governor Abdur Rouf Talukder has instructed the MDs to provide all kinds of assistance in the import to ensure the supply of necessities during Ramadan,” Mezbaul said.

He further said that the opening of unnecessary LCs is closed. However, it has been suggested to keep the margin rate at a minimum level in the case of import financing of essential commodities during Ramadan.