Central bank won’t provide ’illegal liquidity support’ to banks: Ahsan Mansur

Bangladesh Bank (BB) will not provide illegal liquidity support or any other facilities to any bank, including Sharia-based Islami banks.

Governor Ahsan H. Mansur said this while speaking at a press conference at the boardroom of the central bank on Tuesday (August 20) on the latest situation in the banking sector.

“Now if the depositors withdraw money from the bank occupied by S Alam, which is the result of their deeds. We have nothing to do. Because the depositors have the right to decide where to put their money,” he pointed out.

The governor hoped that inflation would come down within 6/7 months. Monetary policy will not change much but will be tightened a bit. The currency market is going well now. The exchange rate of the US dollar went to Tk125 but now it has come down to Tk120/121 in kerb (open) market.

Will action be taken against the irregularities in the banking sector? In a reply to such a query, the governor said that action would be taken against the irregularities of persons involved, but not against their institutions. Because there are many employment issues involved.

Regarding taking over S Alam-owned banks and dissolving the board of other weak banks, Mansur said, taking action against weak banks or dissolving their board is under consideration. However, no decision will be taken hastily.

Regarding non-performing loans, the governor said, “We want to go to international standards regarding NPL (non-performing loan). Traders have asked for some time to do this as export-import would be affected by this. The BB will discuss it with the IMF, but there is no doubt that we will go to action for NPL in with the international standards.”

Regarding the instability of the government banks, the governor said that the instability of the state-owned Sonali and Palli Sanchay Banks is unfortunate.

In response to a question, the governor said that the central bank has no decision to cancel Tk 1000 notes.

Will Bangabandhu's picture removed and the note signed by the new governor come soon? In response to this question, Mansur said that when it is necessary to make notes in the mint, the notes will be printed and signed.