5 troubled banks' payout imminent, but process will take time: Governor

Bangladesh Bank Governor Ahsan H Mansur has said depositors of five troubled Islamic banks will certainly receive their money soon, although procedural and technical challenges mean the process will take some time.

Speaking to journalists at the Secretariat yesterday, the governor said preparations were under way to credit depositors' funds directly into their bank accounts. "It will take a little time due to some procedural issues, but we are planning to deposit the money directly into customers' accounts so that everyone receives it at the same time," he said.

Mansur confirmed that the government has already released Tk20,000 crore from the national budget for the newly formed Sammilito Islami Bank, created through the merger of the five troubled Islamic banks. He said the priority is to ensure a smooth and orderly payout without forcing depositors to queue at bank branches.

In an exclusive interview with The Business Standard during a two-day awareness and promotional programme on Bangla QR codes in Cox's Bazar, which ended on Monday, the governor cautioned that technical work was still required. "All five banks' IT systems need to be fixed. This process may take another 10 to 15 days," he said.

Explaining the payout mechanism, Mansur said every depositor would be required to open a new account with the merged bank. Around 76 lakh customers will be brought under the new system, after which their funds will be credited automatically. "We do not want customers to come and stand in lines to withdraw cash," he added.

'Inflation impacted by rice imports'

Shifting focus to the broader economy, Governor Mansur said he believes inflation "would have remained below 7%" if rice had been imported from India on time.

He directly attributed a significant spike in the cost of living to policy failures, stating, "Inflation has increased by 1.4 percentage points solely due to the failure to import rice on time. There is a policy weakness behind the 18% increase in the price of rice. We isolate ourselves from the global market."

The governor stressed that the two main responsibilities of the Bangladesh Bank are controlling inflation and restoring discipline in the banking sector. He noted that while the micro-economic situation, including the exchange rate, reserve position, and inflation, remains manageable, improving the country's overall economic condition depends on the political environment and the "goodwill of politicians."

On reserve management, the governor said relying on loans from the IMF and the World Bank is not a sustainable solution, as those funds would ultimately be used for debt repayment. "We must build reserves using dollars generated from our own economy. That is why we are buying dollars from the market," he said.