Bangladesh Bank has extended an emergency liquidity support of Tk2,500 crore to Islami Bank Bangladesh PLC in an effort to stabilise the lender amid a worsening liquidity crunch triggered by heavy deposit withdrawals.
The disbursement was made on Sunday as part of a short-term intervention by the central bank following growing instability at the bank and mounting pressure from customers seeking to withdraw funds.
The crisis at Islami Bank has intensified in recent days after the appointment of a new chairman following Eid, which led to unrest among a section of customers. A group identifying itself as the “Conscious Customers Forum” has been staging continuous protests opposing the appointment, contributing to heightened uncertainty among depositors.
As concerns spread, a significant number of account holders began withdrawing their savings, placing severe strain on the bank’s liquidity position. The pressure eventually escalated to a point where the bank struggled to meet withdrawal demands and failed to maintain its required Cash Reserve Ratio (CRR) with the central bank.
Facing the deteriorating situation, Islami Bank had requested Tk10,000 crore in emergency liquidity assistance from Bangladesh Bank. In response, the central bank approved an initial tranche of Tk2,500 crore as immediate support.
Earlier, Bangladesh Bank Governor Md Mostaqur Rahman indicated that the institution was ready to extend necessary assistance to ensure stability in the banking sector and protect depositor confidence.
The intervention is aimed at restoring liquidity flow and preventing further disruption in banking operations while broader stability measures are being assessed.
