Bangladesh Bank provides Tk 2,670 crore special support fund to Islami Bank
Graphics: Agamir Somoy
Bangladesh Bank has provided Tk 2,670 crore in special support to Islami Bank Bangladesh PLC. The information was confirmed by sources within the ailing Islami Bank. The support was extended by the central bank on Sunday (June 14) to address the bank's liquidity crisis.
According to discussions with bank officials, there has been a significant increase in pressure from customers withdrawing cash from various branches and ATMs in recent times.
To ensure smooth day-to-day transactions and guarantee the supply of funds according to customer demand, the central bank provided this support on an emergency basis.
Over the past few days, customer crowds have been growing at Islami Bank branches. As many customers simultaneously attempted to withdraw their deposits, the bank faced a temporary liquidity shortage.
In this situation, Bangladesh Bank took the initiative to provide direct liquidity support to restore customer confidence and keep banking operations normal.
Earlier last week, Islami Bank had applied to Bangladesh Bank seeking Tk 10,000 crore in liquidity support.
Bank officials stated that due to customer concerns and excessive withdrawals, pressure on cash supply had increased, and they noted that the central bank's cooperation was necessary to manage that pressure.
According to those concerned, this support from the central bank will help normalize cash supply across Islami Bank's branch and ATM networks, making it easier to continue daily banking services for customers.
Economists and banking sector insiders note that central bank support during a temporary liquidity crisis at any bank is a normal process within the international banking system. However, the biggest long-term challenges will be restoring customer confidence and further strengthening the bank's financial foundation.
