Crisis-hit Islami Bank Bangladesh PLC has sought Tk聽1,100 crore in loans from Sonali Bank through the interbank market and has urged the Bangladesh Bank to issue a guarantee for the loan.
A letter was sent to the central bank on September 9 regarding this request.
Sonali Bank has agreed to provide the loan, but only if the Bangladesh Bank guarantees it.
Earlier, BB governor Ahsan H Mansur stated that the central bank would provide liquidity support to struggling banks through the interbank market, rather than by printing money.
He added that BB would offer guarantees to ensure other banks feel secure in lending to these troubled banks.
In addition, Islami Bank has requested Tk聽5,000 crore in liquidity support under the Standing Lending Facility (SLF) from the central bank, according to bank sources.
The Shariah-based bank has been facing a severe liquidity crisis for years, due mainly to large-scale loan withdrawals by the S Alam Group and others through alleged illegal and unethical practices.
At a press conference on September 5, new IBBL chairman Md Obayed Ullah Al Masud revealed that the S Alam Group had withdrawn over Tk聽90,000 crore in loans from Islami Bank alone, making up more than half of the bank鈥檚 total loan portfolio.
The S Alam Group, reportedly with backing from a state agency, forcibly took control of Islami Bank in 2017, sidelining its founding shareholders and directors.
The Bangladesh Bank, under the leadership of former governor Abdur Rouf Talukder, provided all kinds of possible liquidity support to these banks despite knowing that these banks continued allowing the S Alam Group to withdraw money as anonymous loans.
This occurred even though the banks鈥� current accounts remained negative, leaving them incapable of making any transactions.
On August 22, the Bangladesh Bank removed the group鈥檚 control over Islami Bank, reconstituting the board and appointing Masud as the new chairman.
Earlier, on December 26 past year, Sonali Bank provided Tk聽1,000 crore to Islami Bank for 14 days under a liquidity facility called 鈥楥all and Short Notice Deposit鈥�.
However, Islami Bank is yet to repay the full amount, even though the repayment period has passed.
