No bank shall be provided with 'illegal' liquidity support: Bangladesh Bank

The central bank will not provide "illegal" liquidity support or other facilities to any bank, including Shariah-based banks from now on, Bangladesh Bank Governor Ahsan H Mansur said today (20 August).

In a press conference in the central bank boardroom, he also said, "If depositors withdraw money from a bank occupied by S Alam, it is the result of their actions. We have nothing to do about it. Because depositors have the right to decide where to put their money."

Asked whether any action will be taken against irregularities, the governor said, "Action will be taken against irregularities but it will be against the person involved, and not the organisation. Because every organisation involves many employment issues."

Taking measures against weak banks or dissolving their boards is under consideration, the governor said, adding, "But no decision will be taken suddenly."

Regarding non-performing loans, the governor said, "We want to adopt international standards regarding NPLs.

"Traders have asked for some time to implement this, claiming it will affect export-import. We have said we will discuss it with the IMF, but there is no doubt that we will adopt international standards."

Asked if the Tk1,000 note will be cancelled, the governor said the Bangladesh Bank has made no such decision.

Responding to another question about whether notes with Bangabandhu Sheikh Mujibur Rahman's photo will be removed and those with the new governor's signature will be printed soon, the governor said, "New notes will be printed and signed when it is deemed necessary.