BB Injects tk 2,500 Cr into Islami Bank to address liquidity crunch

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BB Injects tk 2,500 Cr into Islami Bank to address liquidity crunch

Bangladesh Bank (BB) has provided Tk 2,500 crore in special liquidity support to Islami Bank Bangladesh PLC in an effort to help the country’s largest Shariah-based lender overcome an acute cash shortage caused by large-scale deposit withdrawals.

The development was confirmed by Bangladesh Bank Executive Director and spokesperson Arief Hussain Khan, who said the assistance forms part of the central bank’s efforts to stabilise the bank’s liquidity position.

According to officials from both Bangladesh Bank and Islami Bank, the lender had sought Tk 10,000 crore in liquidity assistance from the central bank last week amid mounting pressure on its cash reserves. The Tk 2,500 crore disbursed on Sunday represents the first tranche of the requested support package.

Bangladesh Bank Governor Md. Mostaqur Rahman had earlier indicated that the central bank was prepared to extend financial support if needed. Speaking at a post-budget press conference on June 12, he said the liquidity crisis at Islami Bank would be resolved soon and assured depositors that they would not face difficulties in withdrawing their funds.

“If necessary, emergency liquidity support will be provided,” the governor said.

The central bank’s latest intervention is expected to ease pressure on Islami Bank’s cash position and help restore depositor confidence following recent concerns that triggered significant withdrawals.

Banking sector analysts said the move demonstrates Bangladesh Bank’s commitment to safeguarding financial stability, protecting depositors’ interests, and ensuring the uninterrupted operation of one of the country’s largest private commercial banks.

 

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