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Bangladesh Bank has provided a special loan of Tk 25 billion to Islami Bank to address its liquidity crisis. The assistance was extended on Sunday, according to information from the bank. The crisis intensified after the appointment of a new chairman following Eid, which triggered protests by a group of customers under the banner of the 'Conscious Customer Forum'. Many depositors began withdrawing their funds, worsening the bank’s liquidity position.
As a result, Islami Bank failed to meet customer withdrawal demands and could not maintain the required cash reserve ratio (CRR) with the central bank. Last week, the bank sought Tk 100 billion in liquidity support from Bangladesh Bank, which responded by providing an initial Tk 25 billion. During a post-budget press conference on Friday, Bangladesh Bank Governor Mostakur Rahman had hinted at such support, assuring that depositors would face no withdrawal problems.
The central bank’s intervention aims to stabilize Islami Bank’s operations and restore depositor confidence amid ongoing unrest over leadership changes.
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