Troubled banks will be able to pay back depositors' money from Sunday: Governor
He also said Bangladesh Bank resumed liquidity support to problem banks and provided Tk22,000 crore based on their needs
Troubled banks will be able to pay back depositors' money from Sunday as Bangladesh Bank provided liquidity support to meet their cash shortfall.
Ahsan H Mansur, governor of the Bangladesh Bank, made the assurance at a press conference today (28 November) at its headquarters saying that depositors will not be disappointed when they go to withdraw their deposits.
However, he said no bank in the world can survive if all depositors withdraw money at once.
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He said Bangladesh Bank resumed liquidity support to problem banks and provided Tk 22,000 crore based on their needs.
He said that the central bank backtracked from its earlier stance of not printing money for the sake of depositors.
However, it will not create inflationary pressure as the central bank also introduced new instruments to mop up money from the banks which have excess liquidity.
In this way, the net reserve money will not increase, he added.
The big difference in printing money from previous practice during Hasina's government is that problem banks were restructured and strictly monitored, the governor said.
He said problem banks were provided liquidity support by creating new money without taking punitive actions against the wrongdoers.
