5 banks provide Tk 9.45b liquidity support to 4 fragile banks

Four financially troubled banks have received Tk 9.45b in liquidity support from five stronger banks, backed by guarantees from Bangladesh Bank (BB).

The five banks - City Bank PLC, Mutual Trust Bank PLC (MTBL), Dutch-Bangla Bank PLC, Bengal Commercial Bank Ltd, and Eastern Bank PLC- have provided a total of Tk 9.45 billion liquidity support to four weak banks - First Security Islami Bank Limited (FSIBL), Social Islami Bank PLC, National Bank Ltd and Global Islami Bank PLC, confirmed BB Executive Director and spokesperson Husne Ara Shikha.

Of the banks, FSIBL has received Tk 3 billion, with Tk 2 billion from City Bank, Tk 500 million from MTBL, and another Tk 500 million from Dutch-Bangla Bank Limited (DBBL).

National Bank has been given a total of Tk 2.70 billion. Of the amount, City Bank provided Tk 2 billion, Bengal Commercial Bank provided Tk 200 million and MTBL Tk 500 million.

Besides, Social Islami Bank Limited received a total of Tk 3.50 billion. Of the amount, City Bank provided Tk 3 billion and MTBL Tk 500 million.

Lastly, Global Islami Bank received Tk 250 million from Eastern Bank.

The liquidity injection has been initiated to support these banks in overcoming the ongoing cash crunch. Some banks are still in the process of completing the necessary documentation before extending further support to other affected institutions.

The development comes as the weak banks are facing a severe liquidity crisis.