Five financially troubled banks are receiving Tk 1,000 crore in liquidity support from six stronger banks, backed by guarantees from Bangladesh Bank, reports UNB.
According to the central bank, the six financially sound institutions have already disbursed over Tk 1,000 crore to assist their weaker counterparts. Bangladesh Bank confirmed this development on Wednesday, though officials declined to comment further to the media.
On September 22, Bangladesh Bank announced a special initiative where financially robust banks would extend loans to weaker banks for a limited period as part of a deposit placement strategy.
While no bank is being forced to participate, the central bank's guarantee to repay the loans has reassured stronger banks, encouraging them to provide this crucial liquidity support.
Bd-pratidin English/Tanvir Raihan
