Bangladesh Bank Executive Director and Spokesperson Husnay Ara Shikha has urged depositors to refrain from withdrawing money from banks unless necessary, emphasizing that their funds are secure.
Speaking at a press conference today regarding the current situation in the banking sector, Shikha noted that no bank globally could meet a sudden, simultaneous demand for withdrawals by all its customers.
“There is no need to panic about your deposits. Everyone will get their money back,” Shikha assured. Her statement comes as some banks have struggled to repay depositors due to a surge in withdrawal requests. Bangladesh Bank has been providing targeted liquidity support to several restructured banks in response to the liquidity pressure.
Since the establishment of the interim government in August this year, the boards of directors of 11 banks, many of which are heavily influenced by the S Alam Group, have been reconstituted. However, nearly half of these banks face difficulties meeting depositor demands, especially as the central bank has ceased providing liquidity support through money printing.
Bangladesh Bank has formed three task forces to address ongoing challenges in the financial sector. One is focused on comprehensive banking reforms, another on enhancing the efficiency of the banking sector workforce, and a third on recovering laundered money.
Shikha revealed that the task forces have begun recruiting international lawyers and consultants for their objectives.
Meanwhile, the central bank’s press conference also highlighted broader concerns in the banking sector. The persistent liquidity crunch has driven some banks to offer higher deposit rates to attract and retain depositors.
The situation coincides with a slight drop in inflation, which fell to 9.92 percent in September from 10.49 percent in August, according to the Bangladesh Bureau of Statistics.
