Bangladesh Bank has granted a Tk 2.5 billion special loan to Islami Bank Bangladesh PLC to help ease its ongoing liquidity crisis. The central bank disbursed the funds on Sunday, June 14.
The crisis follows widespread unrest after the appointment of the bank's new chairman. Protesters, operating under the "Conscious Customer Forum" (Sacheton Grahok Forum), have been demonstrating continuously against the leadership change. This instability triggered massive deposit withdrawals, leaving Islami Bank unable to meet customer cash demands or maintain the central bank's mandatory liquidity limit.
Facing a severe cash shortfall, Islami Bank formally requested Tk 10 billion in financial support last week. In response, Bangladesh Bank approved the initial Tk 2.5 billion lifeline.
During a post-budget press conference last Friday, the Bangladesh Bank Governor assured the public that the central bank would support Islami Bank through the turbulence. He emphasized that the crisis would be resolved quickly and guaranteed that depositors would face no issues withdrawing their money.
