Md Mehedi Hasan

The FID later backtracked following criticism from different quarters, including the International Monetary Fund (IMF), about the formation of a public corporation since state enterprises have usually underperformed in the country.

BASIC Bank is experiencing a deep liquidity crunch as depositors have been withdrawing money for weeks following news that the state-run lender is going to be acquired by a private commercial bank.

The Sikder family has apparently lost its grip on National Bank Ltd as Bangladesh Bank has appointed a new board for the country’s first private bank.

In July last year, the central bank withdrew the 9 percent lending rate cap and introduced the Six-months Moving Average Rate of Treasury bills (SMART).

Amid persistently higher inflation in Bangladesh for more than a year, the low- and middle-income groups are struggling to meet their daily expenses.

From last July to April 22 this year, government loans from commercial banks amounted to Tk 65,432 crore, according to Bangladesh Bank. In the same 10 months or so of fiscal year 2022-23, it was only Tk 5,334 crore.

In fact, the reactions of the associated bankers and directors, circumstances centring the meetings where the decisions were taken alongside protests in one case confirmed that these had been decided by the government and relayed through the central bank.

A recent rush to withdraw money from the BASIC Bank and National Bank is worsening the situation the troubled institutions are facing.

Bangladesh Bank has ordered Janata Bank to cancel the Tk 3,359 crore interest waiver facility the lender had allowed to AnonTex Group, after an audit found forgeries and scams involving the loans.

Bank Asia is likely to acquire the Bangladesh operations of Karachi-based Bank Alfalah, according to information disclosed to the Pakistan Stock Exchange yesterday.

Bank Asia is going to hold a meeting of its board of directors next Sunday and is likely to disclose the mater in detail, a senior official of Bank Asia said.

Although banks in the country normally face a liquidity shortage due to cash withdrawals ahead of Eid-ul-Fitr each year, a majority of them have sufficient funds on hand this time around thanks to continuous liquidity support from Bangladesh Bank.

The central bank has already unveiled a framework to address vulnerabilities in the banking sector, rein in non-performing loans (NPLs) and punish wilful defaulters.

Under the currency swap agreements introduced last month, the banking regulator took $1.17 billion from commercial banks and injected around Tk 20,000 crore in the form of local currencies into the banking system, according to several central bankers.

After Padma Bank, ICB Islamic Bank appears to be the next in line to be absorbed by a stronger bank under the central bank’s roadmap to clean up the banking sector and bring in corporate governance.

Bangladesh’s external debt has crossed the $100 billion mark for the first time, indicating a challenging future amid foreign exchange shortage.

Deposits at non-bank financial institutions (NBFIs) have slightly increased on an interest rate hike but the number of deposit accounts have dropped sharply, indicating a lack of trust.

The planned merger of Shariah-based Exim Bank and struggling Padma Bank is likely to take between 18 months to two-and-a-half years to complete, according to central bank officials.

Liquidity in the foreign exchange market is increasing due to a rise in the inflow of US dollars, riding on growing remittance, export earnings and currency swap deals.

Liquidity in the foreign exchange market is increasing due to a rise in the inflow of US dollars, riding on growing remittance, export earnings and currency swap deals