2024-09-25 08:09:35
The current account deficit of nine commercial banks of the country’s private sector has exceeded Tk 18 thousand crore. Among these are a few small banks; Which are very liquidity crisis. Most of them are governed by Sharia. The Governor of Bangladesh Bank has indicated that these small banks can be merged. Ahsan H. Mansoor.
He indicated this in an emergency press conference of Bangladesh Bank on Monday (September 23).
In response to a question about the merger of Islami Bank Bangladesh with other Islamic banks, the governor said that there is a plan to merge some small banks facing liquidity crisis. Because most of the banks are now owned by the government. So it will be easy to integrate in the case of Govt. However, we will work by understanding the reality. Even if the bank is merged, the money will be returned to the depositors.
He said, in the initial phase, we have formed a task force to audit nine banks. We will audit three banks each. Islami Bank will be included at the beginning of this process. Through the task force, each loan of these banks will be audited and the beneficiaries will be identified.
Apart from this, he also said that the net deposits of the banks which are currently in liquidity crisis are positive.
Ahsan H. Mansoor said that customers are withdrawing money from troubled banks and depositing it in other banks. Banks from which money is being withdrawn are facing liquidity crisis. Again, the liquidity of those who are being held is increasing. For this we will give money to the banks with less than the banks with more liquidity as guarantors. In this case, if the weak bank fails to pay, Bangladesh Bank will pay the money. So far no one has been paid from this scheme. If their condition improves, then no one will have to pay. I will give if necessary. Money will be given according to who needs money. However, these banks now have good cash-flow. Banks have a liquidity surplus of Tk 810 crore in the last few days. Hope the problem will be solved.
The policy interest rate will be increased
Bangladesh Bank has decided to increase the policy rate or policy interest rate again to control the rising food prices and inflation. This interest rate will be increased this week. Governor Ahsan H Mansoor said that it will gradually increase next month.
According to data from the Bangladesh Bureau of Statistics (BBS), a government agency, the 12-month average inflation in the fiscal year 2023-24 was 9.73 percent. Besides. Consumer price inflation rose to 11.66 percent in July, the highest since 2010-11. The government had set a target of keeping inflation within 7.5 percent in the last financial year. But inflation was much higher than the target.
Bangladesh Bank has been following contractionary policy several times since May 2022 and raising policy rates to keep commodity prices under control. The rise in policy rates has increased the interest on bank loans and made borrowing more expensive than before.
11 banks freed from influencers
S Alam Group took control of eight banks with the help of Bangladesh Bank and an intelligence agency during the Awami League government. These are Islami Bank Bangladesh, First Security Islami Bank, Al Arafa Islami Bank, Social Islami Bank, Global Islami Bank and Union Bank. Besides, they also took control of Bangladesh Commerce Bank and National Bank.
After the fall of Sheikh Hasina’s government in the student coup on August 5, the board of directors of the banks was dissolved and reorganized. Among them, the central bank has dissolved the board of 11 banks, including eight under the control of S Alam. The other three banks whose board has been reconstituted are IFIC, UCB and Exim Bank.
Among them, former prime minister Sheikh Hasina’s private industry and investment advisor Salman F Rahman was in possession of IFIC Bank, former land minister Saifuzzaman Chowdhury and his family controlled United Commercial Bank.
In addition, Exim Bank was occupied by Nazrul Islam Majumdar, former chairman of Bangladesh Association of Banks (BAB), an influential businessman and private bank entrepreneurs and directors’ organization.