2024-09-28 18:31:35
Published: 10:18, 26 September 2024 Updated: 15:11, 26 September 2024
Sabal 10 Bank has expressed its interest in providing loans to banks facing liquidity crunch. As these banks have excess liquidity, they agreed with the central bank to lend to distressed banks. Bangladesh Bank will guarantee these loans.
The 10 banks that have agreed to lend or lend to distressed banks are BRAC, Eastern, City Bank, Dutch-Bangla, Bank Asia, Shahjalal Islami, Mutual Trust, Pubali Bank, Dhaka Bank and state-owned Sonali Bank. The managing directors of these banks ( MD) and their representatives met with the governor on Wednesday (September 25) and agreed to lend to distressed banks.
In this regard, the spokesperson and executive director of Bangladesh Bank Husne Ara Shikha told the media that Bangladesh Bank will guarantee the loans given to weak banks in crisis. If the weak banks want to return the loan money, the central bank will return it to the strong banks within three days. No bank can take any money for lending. Bangladesh Bank will decide how much liquidity assistance will be given to a bank. Besides, the interest rate of the loan will be determined based on the agreement of the two banks.
Meanwhile, recently 5 banks have already signed agreement with Bangladesh Bank to get liquidity support. The banks are private sector National, Social Islami, First Security Islami, Union and Global Islami banks. More bank agreements are in the pipeline to be signed.
That’s why the central bank is the guarantor of the loan – Bangladesh Bank has taken this decision mainly to control inflation. If the weak bank fails to repay the loan due to any reason, the central bank will give that money. For now, Bangladesh Bank is arranging loans from other banks without giving money directly. Through this market money will go from one bank to another bank. As a result, there will be no additional impact on inflation.
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