ABB dismisses ‘fake news’ about liquidity in banking sector

The Association of Bankers, Bangladesh (ABB) has ruled out “fake news” about the lack of liquidity in the banking system as there is enough liquidity in banks, reports news agency BSS.

“It is most disappointing to see different posts on social media about a so-called lack of taka liquidity in Bangladesh’s banking sector and about customers facing difficulty withdrawing cash from banks. These unfounded comments appear to be particularly targeted at the Bangladeshi expatriate diaspora to discourage them from remitting their savings to Bangladesh through legal banking channels,” said ABB chairman Selim RF Hussain on Sunday.

In a statement, Hussain condemned such rumours and termed the social media posts as fake.

Hussain, also managing director (MD) and chief executive officer (CEO) of the BRAC Bank Limited, said all banks in the Bangladesh banking sector operate under the liquidity regulations and strict supervision of our central bank, the Bangladesh Bank.

“We would like to draw the attention of our respected customers to the recent Bangladesh Bank communication - confirming that banking sector has Tk. 160,000 crore (1.6 trillion) of liquidity. The Bangladesh Bank has made it clear that banks have sufficient liquidity to support the needs of their different customer segments,” he added.

Selim RF Hussain further said it is unfortunate that fake news about a liquidity crunch is being spread at a time when the central bank and the banking sector are working to stabilise the economy and revitalise economic growth.

“We encourage our respected account holders and the general public to avoid being misled by such fake news and to continue to show faith in scheduled banks. Let us not forget that the banking sector has contributed strongly to the economic development of our country over the last 50 years. We are confident that contribution, under the guidance and supervision of the Bangladesh Bank, will continue in the future,” he added.