Bangladesh Bank has resumed lending to commercial banks by printing new money, providing around Tk 9,000 crore in liquidity support to Islami Bank over the past week. The central bank said the assistance was necessary to help the bank manage heavy deposit withdrawals following unrest over the appointment of its chairman. The funds were created through new money issuance, and economists warned that such actions could exert limited inflationary pressure.

According to officials, Islami Bank had failed to maintain its required cash reserve ratio and faced difficulties meeting customer withdrawal demands. The central bank extended the loan under its lender-of-last-resort function to stabilize the banking system. Former officials and economists noted that while money creation increases supply theoretically, the impact on overall inflation is expected to be minimal due to the limited scale of the support.

Bangladesh Bank stated that the liquidity assistance was temporary and would be repaid within the stipulated period, ensuring the excess money returns to the central bank. The move aimed to restore depositor confidence and prevent further instability in the financial sector.