Bangladesh Bank (BB) has extended Tk 6,585 crore in liquidity support to address short-term funding needs under its credit guarantee scheme.
Husneara Shikha, Executive Director and spokesperson of the central bank, disclosed it to reporters on Thursday (November 14) saying that the support is being provided without printing additional currency, as the funds are managed through inter-bank lending under the central bank's guarantee, reports UNB.
According to Shikha, the central bank is prepared to continue offering this support as needed, depending on the demands of individual banks.
So far, seven banks facing liquidity challenges have received funding from 10 financially stable banks under this arrangement.
Despite this injection of liquidity, some banks are still experiencing difficulties in meeting depositor withdrawals, which the BB spokesperson attributes to aggressive loan disbursement practices involving fraudulent documents during the tenure of the previous government.
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