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Three days after Islami Bank Bangladesh asked the central bank for Tk 100 billion in liquidity support, Bangladesh Bank has clarified it would provide the troubled lender with a cash injection, but has not specified the amount.
At a post-budget press conference in Dhaka on Friday, Governor Md Mostaqur Rahman said the depositors at the troubled bank will see the existing cash crisis resolved in a few days, reports bdnews24.com.
"It’s being rumoured on social media that the government is illegally interfering in Islami Bank. We’ve not done so. We didn't order any loan or anyone’s transfer. We didn’t dictate anyone’s promotion either," he said.
“We’ll provide liquidity support. There’ll be no difficulty for depositors in the next few days. They can withdraw their deposits freely at any time. There will be problem doing this."
Amid street protests and heated exchanges in parliament over Islami Bank, the troubled lender sought Tk 100 billion in liquidity support on Jun 9.
The Shariah-based bank said it is facing increasing “pressure on cash withdrawals” amid heated discussions surrounding the appointment of a new chairman.
The next day, an observer was appointed to the bank.
The crisis deepened after the central bank appointed Khurshid Alam to chair the Shariah-based bank’s board of directors on May 24.
It was followed by hours-long street protests where demonstrators clashed with police outside the bank's headquarters in Motijheel. It also led to heated exchanges in parliament.
Meantime, the amount of deposit withdrawals from the bank has crossed Tk 30 billion.