State to take over if any weak bank fails to turn around: BB governor

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State to take over if any weak bank fails to turn around: BB governor

B Mirror Desk : Depositors will be safeguarded as the state will intervene if any bank fails to recover, stated Ahsan H Mansur, Governor of Bangladesh Bank. He emphasized that the central bank will provide support to struggling banks, as mentioned during a press conference at the Bangladesh Bank headquarters on May 14.

The governor also indicated that under the new Bank Resolution Act, the central bank plans to acquire banks in the future. Additionally, he announced the implementation of a market-based exchange rate effective immediately to fulfill IMF requirements for loan approval. Mansur noted that Bangladesh is expected to receive a total of $3.5 billion by June from various multi-donor agencies, including the World Bank, Asian Development Bank, and IMF. He expressed optimism that the exchange rate would remain close to the current level due to sufficient dollar liquidity, and confirmed that banks were informed about the market-based exchange rates during today’s meeting.

Furthermore, he mentioned that the central bank would step in to stabilize the rate in the event of significant foreign payments.

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