Bangladesh Bank will not print money to provide loans to National Bank. Instead, the bank will have to borrow from other banks to meet depositors’ withdrawal demands, with the central bank acting as guarantor for those loans, Bangladesh Bank spokesperson Arif Hossain Khan said on Thursday (October 8).
Earlier, Bangladesh Bank Governor Mastakur Rahman instructed National Bank to ensure that depositors can withdraw money according to their needs from October 15. The bank was also directed to ensure adequate cash availability at all its branches and ATM booths.
On Thursday, National Bank Chairman Melita Mehjabeen and acting Managing Director Zahidul Haque met with Governor Mastakur Rahman.
During the meeting, instructions were given to ensure that depositors can withdraw funds according to their requirements. The National Bank chairman also briefed the governor on the bank’s recent situation.
She said recent measures taken by Bangladesh Bank had helped establish good governance at the bank. Positive changes had also been made in sponsor management to improve the bank’s efficiency and operational capacity.
The governor said Bangladesh Bank had recently taken note of National Bank’s liquidity situation and depositors’ demand to withdraw funds.
Against this backdrop, he directed the bank to take necessary measures to protect depositors’ interests, maintain public confidence in the banking system and ensure smooth banking operations.
Bangladesh Bank has previously provided liquidity support to National Bank amid liquidity pressures, including assistance through central-bank financing and guarantees.
