Islami Bank Bangladesh has failed to maintain its required cash reserve ratio (CRR) with Bangladesh Bank amid a liquidity crisis following the appointment of new chairman Khurshid Alam. Over the past week, depositors withdrew Tk 4,240 crore, and total deposits fell further in the last two days. The bank has sought Tk 10,000 crore in special liquidity support from the central bank, which is closely monitoring the situation but has not yet decided on the request.

According to bank sources, deposits dropped from Tk 1,84,382 crore on May 31 to Tk 1,80,141 crore on June 7, while the bank’s current account balance with the central bank fell from Tk 7,015 crore to Tk 2,600 crore. The central bank confirmed that Islami Bank’s CRR requirement of about Tk 5,000 crore could not be met due to excessive withdrawals. The unrest began after former deputy governor Khurshid Alam was appointed chairman on May 24, prompting protests from depositors and shareholders.

Protesters have continued demonstrations for nine consecutive days, demanding Alam’s removal and expressing concern over the safety of their deposits. The central bank has stated it is prepared for any situation as it monitors developments.