BB urges clients not to withdraw money unless it’s emergency

The Bangladesh Bank (BB) has urged the clients not to withdraw money unless it's an emergency.

BB spokesperson Husne Ara Shikha on Wednesday said some clients withdraw money from their savings without any reason and deposit the money to some other banks.

As a result, some banks are struggling to disburse money. If many clients try to withdraw money together, then it is impossible for any bank in the world to survive.

The BB spokesperson said this in a press conference at the Bangladesh Bank conference room on Wednesday.

Husne Ara Shikha said there is nothing to be panic about the banks. The central bank has a specific plan to put the banks on a good footing.

She said, “We have always told the depositors to refrain from withdrawing extra money. We want to regain people’s confidence. Works are underway for that. The governing bodies of the banks which were in a vulnerable situation have been changed already. Despite the crisis, these weak banks have been provided Tk 55.85 billion as assistance over the last one and a half months.”

Asked about whether the taskforce formed for the development of the banking sectors is doing anything effective, the taskforce is working to reform the banking sector. Another taskforce is working to enhance the competence of the Bangladesh Bank officials. Besides, works are underway to appoint lawyers and consultants to bring back the laundered money.

Speaking regarding the allegations of irregularities against the NRBC Bank chairman, Husne Ara Shikha said, “All the complaints received by the BB against them are under investigation. We have reshuffled the governing bodies of 11 banks. The central bank is working on these banks. Our focus is now on the Islamic banks. We will focus on other banks once we are done with these Islamic banks. After these 11 banks, we will probably work on four other banks.”

Speaking regarding the appointments of ‘receivers’ in different industrial groups, the BB spokesperson said the central bank won’t appoint any receivers on its own initiative. If there is a court order regarding this, then actions will be taken as per that.

Asked about the allegations of irregularities regarding loan-related issues against some of the controversial business groups, Husne Ara Shikha said the BFIU has already confiscated the bank accounts of a number of persons. They have not submitted any information regarding this to the central bank as yet.”

In response to a question regarding money laundering, “The BB will investigate the cases where money was laundered through legal channels. It’s tough for the central banks to investigate the cases where money was transacted through illegal channels. The BFIU is working on this. Our main focus is on money laundering. But it will be done legally, not forcefully. We are receiving huge remittances. The USA is at the top of the list of the countries sending the highest amount of remittances. The country has also increased investments in Bangladesh.”

Speaking regarding controlling price hike, the BB spokesperson said inflation rate declined after the central bank raised the policy interest rate.

“The inflation will come to nearly 6 per cent within six months if the increased policy interest rate is maintained. Such initiatives worked well in several countries. We hope it will work in our country as well,” she added.