Bangladesh Bank Governor Dr Ahsan H. Mansur has confirmed that the central bank injected Tk 22,500 crore into the country’s banking system to protect depositor funds and stabilise six financial institutions facing severe liquidity shortages. The intervention, carried out through temporary money creation, was described as a necessary step to preserve systemic stability and prevent a potential loss of public confidence.
Speaking on the issue, Dr Mansur explained that without timely liquidity support, the affected banks could have struggled to meet routine withdrawal demands. Such a situation, he warned, might have triggered panic among customers and created spill-over risks across the wider financial sector. “Safeguarding depositors is our highest priority,” he said, stressing that the central bank acted decisively to maintain uninterrupted banking operations.
📊 Overview of the Liquidity Support Initiative
| Reason | Explanation |
|---|---|
| Maintaining public confidence | Ensuring depositor funds remain safe and accessible |
| Liquidity shortfall | Six banks faced critical cash-flow constraints |
| Temporary money creation | Tk 22,500 crore injected to stabilise operations |
| Financial stability | Preventing contagion risks across the banking system |
Dr Mansur acknowledged that injecting liquidity into the economy carries inherent risks, including inflationary pressures and potential distortions in credit markets. However, he emphasised that Bangladesh Bank remains firmly committed to strict oversight, disciplined monitoring, and controlled implementation of such measures. The liquidity support, he noted, is temporary and subject to continuous review.
The governor also called on the management and boards of the affected banks to take responsibility for strengthening internal risk management frameworks. Improved governance, transparency, and asset quality recovery are essential, he said, to rebuilding institutional resilience and restoring long-term trust.
Looking ahead, Dr Mansur expressed optimism that customers would begin to notice tangible improvements in service quality and operational stability from Sunday, 1 December. He reiterated that while central bank support is critical during crises, sustainable recovery ultimately depends on reforms at the bank level.
Concluding his remarks, the governor urged all stakeholders — including bankers, regulators, and policymakers — to work collaboratively to reinforce Bangladesh’s financial architecture. Such collective efforts, he said, are vital to ensuring that similar liquidity pressures do not re-emerge and that the banking sector remains resilient in the face of future challenges.