Bangladesh Bank Governor Abdur Rauf Talukdar said that when it is not possible to provide liquidity assistance to a bank, then assistance is given to that bank as a lender of last resort. The Governor has been given this power in the Bangladesh Bank Order. Liquidity support is being given to Islamic banks under that authority. This is done in accordance with the law. Nothing was done outside the law.
Governor Abdur Rauf Talukdar gave this information in response to questions from journalists at the monetary policy announcement ceremony for the second half of the fiscal year 2023-24 (January-June).
As a last resort, the five banks with special loans are Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank. Last Thursday, the banks had a deficit of about 24 thousand crore rupees. Out of this, the statutory liquidity reserve (CRR) deficit was Tk 10,476 crore. And the negative status of the current account of the central bank stands at 13 thousand 292 crores. Due to various irregularities, extreme liquidity crisis occurred in these banks from the end of 2022. Banks have not been able to maintain CRR and Statutory Liquidity (SLR) for a long time. The central bank has kept the transactions of the banks normal by providing special loans.
In response to the question why action is not being taken against these Islamic banks despite various irregularities and whether the governor is afraid of losing the chair, Governor Abdur Rauf Talukder said, “I was the finance secretary. I left regular job and came to contract job. I may leave earlier or the government may ask me to leave. There is no fear of losing a chair here. If I had that fear, I would not have left the job of Finance Secretary and come here. I don’t get scared. Even if someone scares them, it will not be useful.
However, the former governor of Bangladesh Bank Salehuddin Ahmed told Prothom Alo that people used to deposit money in Islamic banks. They did not need to go to anyone. Now people’s trust in these banks has decreased. The reason should be investigated and appropriate measures should be taken.
According to the prothomalo