Troubled banks seek additional liquidity support

Several financially strained banks have sought additional liquidity support from Bangladesh Bank to meet the surge in cash withdrawals ahead of Eid-ul-Fitr.

According to central bank sources, at least six banks have requested Tk 5,000 crore in liquidity assistance to cope with the increased demand. But the central bank has advised them to borrow from financially stable banks under the Bangladesh Bank guarantee scheme, UNB reports. 

Meanwhile, First Security Islami Bank, Global Islami Bank, Social Islami Bank, Union Bank and National Bank have signed agreements with Bangladesh Bank to secure loans under this scheme.

Following the change of government in August 2024, Bangladesh Bank provided Tk 29,000 crore in liquidity support to nine banks.

As per the central bank’s records:

• Social Islami Bank (SIBL) received Tk 5,500 crore
• First Security Islami Bank received Tk 6,500 crore
• National Bank received Tk 5,000 crore
• Union Bank received Tk 2,000 crore
• Global Islami Bank received Tk 2,000 crore
• Exim Bank received Tk 8,500 crore
• Bangladesh Commerce Bank received Tk 200 crore
• ICB Islami Bank received Tk 100 crore
• AB Bank received Tk 200 crore