Bangladesh Bank extended a record Tk 4.10 trillion in liquidity support to commercial banks in June 2026, according to its ‘Money Market Dynamics’ report. The central bank provided the funds through repo, Standing Liquidity Facility (SLF), and Special Liquidity Facility mechanisms, marking the highest single-month assistance on record. The move came as the banking sector faced mounting liquidity pressure.

Sector insiders said weaker banks have long depended on central bank support, but the situation worsened in June following instability linked to the appointment of a new chairman at Islami Bank, which triggered heavy deposit withdrawals. As a result, Bangladesh Bank had to extend additional liquidity assistance to stabilize the bank and the broader sector.

The report showed Tk 1.79 trillion was lent via repo, Tk 1.49 trillion under SLF, and Tk 804.73 billion through the Special Liquidity Facility. Officials noted that stronger banks typically use repo borrowing, while weaker or irregular banks rely more on special facilities. Most of these short-term loans are repaid within their maturity periods, keeping net exposure relatively low.