Central Bank will not provide illegal liquidity support to banks: Governor

Governor Ahsan H Mansoor said that Bangladesh Bank will not provide illegal liquidity support or any other facility to any bank including Sharia-based Islamic banks.

He gave this information in a press conference on the latest situation in the banking sector in the boardroom of Bangladesh Bank today (August 20).

The governor pointed out, 'Now if the depositors withdraw money from the bank occupied by S Alam, that is the result of their actions. We have nothing to do. Because depositors have the right to decide where to put their money.'

The governor expressed hope that inflation will come down within the next 6 to 7 months. There will not be much change in monetary policy but there will be some tightening. Currency market is doing well now. The exchange rate of the US dollar rose to Tk 125, but now it has come down to Tk 120 to Tk 121 in the curb (open) market.

What action will be taken against irregularities in the banking sector? Responding to such questions, the governor said action would be taken against the irregularities of the persons involved, but not against their institutions. Because it involves a lot of employment issues.

Regarding the acquisition of banks owned by S Alam and dissolution of the boards of other weak banks, Ahsan H. Mansoor said that taking action against the weak banks or dissolving their boards is under consideration. But no decision will be taken in haste.

Regarding outstanding loans, the governor said, 'We want to go to the international standards regarding NPLs (non-performing loans). Traders have asked for some time as import-export will be affected. Bangladesh Bank will discuss this with the IMF, but there is no doubt that we will take steps for NPLs with international standards.'

Regarding the instability of the government banks, the governor said, the instability of the state-owned Sonali and Palli Samaki banks is unfortunate.

Bangladesh /SBT