Over the past 15 years, several banks in Bangladesh have faced massive financial mismanagement, with certain industrial groups withdrawing thousands of crores in loans. As a result, these banks are struggling with liquidity crises. To sustain them, Bangladesh Bank has provided Tk 53,000 crore in loans without collateral.
The central bank’s board is set to review how these funds were allocated and the current status of these banks. The 11 banks involved include Islami Bank, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, ICB Islami Bank, EXIM Bank, National Bank, Padma Bank, Bangladesh Commerce Bank, and AB Bank. Six of these were previously controlled by S Alam Group, but that control has ended.
During the last government’s tenure, liquidity shortages were temporarily addressed through direct cash injections, loans against guarantees, and overdraft allowances. However, new Bangladesh Bank Governor Dr. Ahsan H. Mansur has restricted such practices, prioritizing financial discipline.
Liberty News’ economics correspondent states that despite these interventions, concerns remain over whether the borrowed funds will be recovered. Experts suggest legal action against those responsible for financial irregularities. The central bank is monitoring the situation closely, with future decisions depending on the bank’s ability to recover.
LND/BAIZID
