'Don't panic, no need to withdraw more money than necessary': Cenbank

 The Bangladesh Bank has reassured depositors about the safety of their funds, urging them to remain calm and not engage in panic withdrawals that could strain banking capacity. 

 The affirmation came from the central bank's spokesperson Husne Ara Shikha at a press briefing on Wednesday (6 November), where she emphasised that widespread, simultaneous withdrawals would strain any bank's capacity globally. She urged customers not to withdraw funds more than necessary.

 Husne Ara Shikha said, "While some clients may not need to withdraw funds, many are still doing so. Customers should not be unnecessarily concerned about deposits; everyone will receive his or her money back."

 Highlighting the central bank's ongoing support for troubled banks, the spokesperson said, "The Bangladesh Bank has a well-thought-out plan to strengthen the banks. With an aim to restore confidence, over the past month and a half, we've provided support worth Tk5,585 crore to banks facing liquidity issues."

 She also urged journalists to help alleviate public concerns by sharing these reassurances with the public.

 Husne Ara Shikha also responded to several questions put to her by journalists at the briefing regarding various issues.

 Responding to a query, she clarified that the Bangladesh Bank would not appoint a receiver to any business entity on its own initiative; it would act only under a court order. 

"The Bangladesh Bank investigates cases of money laundering through formal channels. However, cases involving illegal transfers, such as hundi, are harder to track and fall within the purview of the Bangladesh Financial Intelligence Unit, which is actively monitoring these activities," she said in response to another question.

When asked about loan irregularities involving controversial industrial groups in various banks, she said, "The BFIU has already frozen several accounts. However, it has not provided any information on this matter to the central bank."

Regarding the effectiveness of the task forces constituted by the central bank, she told journalists, "One task force is working on banking reforms. Another is focused on enhancing the skills of the bank's personnel. The third one is actively working on recovering laundered funds, and we are in the process of hiring lawyers and consultants from various countries for this purpose."

When asked why the central bank is struggling to establish good governance within its own institution, the spokesperson said, "We receive many complaints, both named and anonymous. Our HR department reviews them, but without specific complaints addressed to the governor, we cannot take concrete action."

Addressing inflation, Husne Ara Shikha noted that after the central bank raised the policy rate, inflation has shown signs of easing. "If this trend continues over the next six months, we expect inflation to approach around 6%. This approach has been effective in many countries and should work in ours as well."

On NRBC Bank's alleged irregularities, she said the complaints are under investigation and that the central bank will look further into the matter. She also mentioned that the central bank has already restructured the boards of 11 banks, initially prioritising Islamic banks, but will extend its focus to more banks soon. 

Regarding remittance, she said "We have seen a significant increase in remittance inflow. The USA has now become the top source of remittance for us. Beyond remittance, investments are also coming in from this country."