No business accounts frozen by Cenbank to ensure their operation: Governor

The Bangladesh Bank has not frozen bank accounts of any business entities to ensure that all companies remain operational, said Governor Ahsan H Mansur.

"Business groups will continue to operate as usual, and the salaries of their officers and employees will be paid," he told journalists at a press conference today.

The central bank governor further clarified that no bank accounts held by businesses belonging to S Alam Group or Beximco have been closed to date.

"Some people have spread misinformation about these issues, perhaps some banks themselves have done it on their own accord," he added.

The governor also mentioned that 10 banks that have been identified as being near insolvency will be given liquidity support in the interests of customers.

"We will try to turn things around for these weak banks. We will provide technical, advisory, and liquidity facilities to these banks," he continued.

"We don't want any bank to shut down," he said, adding utmost importance will be given to protect the interests of customers.

Mansur announced that the amount of refund from the Deposit Insurance Fund is being increased and doubled. In the event of a bank failure, depositors will now be able to claim up to Tk2 lakh from this fund, compared to the previous maximum of Tk1 lakh. This change will ensure that 94.60% of deposit accounts are protected.

"We don't want any bank to close. That's why the central bank supports all banks. Meanwhile, the boards of directors of 10 banks have been dissolved and restructured. We are providing various forms of assistance to these banks and hope they will recover soon," he added.

The governor also mentioned that while the Bangladesh Bank has funds available for CMSME loans, these funds are not being disbursed to small entrepreneurs. Despite interest from the World Bank and the IMF in investing in small businesses, banks are not utilising these funds.

"We have requested written explanations from the banks regarding the reasons for this and potential solutions," he said, expressing his optimism that the flow of microcredit will soon increase.

The governor said the task force will begin its work within the next 10 days, with cooperation from institutions including the World Bank, the International Monetary Fund, and the Asian Development Bank.

He added that the task force will review all existing policies and guidelines of the central bank.

"If any policies are found to benefit only a select few traders, they will be revoked or adjusted as necessary. Additionally, the task force aims to dismantle the entrenched family networks within the banking sector," he added.