Shawdesh Desk:

Six financially weak banks in Bangladesh have reportedly received a total of Tk 1,640 crore in loans from stronger banks.

Sources at the Bangladesh Bank said that this step aimed at alleviating the liquidity constraints faced by the country’s weaker banks and restoring some stability to their operations.

According to the sources, the support came from Sonali Bank PLC, Mutual Trust Bank PLC, and Dutch-Bangla Bank PLC.

First Security Islami Bank received Tk 375 crore, Social Islami Bank Tk 300 crore, Union Bank Tk 150 crore, Global Islami Bank Tk 95 crore, National Bank PLC Tk 320 crore and Exim Bank PLC Tk 400 crore.

On September 25, Bangladesh Bank’s governor Ahsan H Mansur held a meeting with the managing directors and representatives of 10 strong banks to discuss the provision of loans against the central bank’s guarantee to aid the weaker banks.

The banks are Sonali Bank, BRAC Bank, Eastern Bank, City Bank, Shahjalal Islami Bank, Mutual Trust Bank, Pubali Bank, Dhaka Bank, Dutch-Bangla Bank and Bank Asia.

The meeting decided that the stronger banks would be able to claim the loan amounts back from Bangladesh Bank within three days, if requested. The interest rates for these loans will be determined based on the prevailing market rates.

Bangladesh Bank is hopeful that these measures will help restore confidence and ensure the stability of the banking sector.