Liquidity Crisis

BB's support helping banks avert pre-Eid liquidity crunch

Although banks in the country normally face a liquidity shortage due to cash withdrawals ahead of Eid-ul-Fitr each year, a majority of them have sufficient funds on hand this time around thanks to continuous liquidity support from Bangladesh Bank.

Padma Bank to turn institutional deposits into preference shares

In a rare move, Padma Bank PLC is going to convert institutional deposits into preference shares and provide them to customers seeking to withdraw funds, exposing how deeper its liquidity crisis is.

Funds get costlier as liquidity crisis drags on

Both the government and banks are facing a tight liquidity situation, which has pushed up the yield of treasury bills and bonds and the lending rate in the banking sector

Liquidity crunch widens fault lines in banking system

An intensifying liquidity crisis is making a majority of Bangladeshi banks turn to call money market and central bank

State banks’ Tk 1,600cr stuck in ailing NBFIs

Deposits of Tk 1,600 crore of four state-run commercial banks —Sonali, Rupali, Agrani, and Janata — have been stuck in several weak non-bank financial institutions (NBFIs) as the latter have repeatedly failed to repay despite maturity owing to a persisting liquidity crisis.

Banks suffering for growing liquidity stress

A majority of banks in Bangladesh, including some Shariah-based ones, are facing difficulties to run their activities due to a liquidity crisis, according to industry people.

Liquidity stress at Islamic banks shows no sign of abating

Liquidity in Shariah-based banks in Bangladesh remains tight due to a dip in deposit collection and the banks’ inability to make the most of the central bank support to overcome the situation, Moody’s Investors Service said in a report.

Islamic banks face liquidity challenges

The Islamic banking sector in Bangladesh continues to face liquidity challenges because of weak governance and regulatory quality, Fitch Ratings said.

BB asks 5 Shariah banks to resolve liquidity crisis

Bangladesh Bank has directed five Shariah-based banks to resolve their current liquidity crisis while three of them were asked to bring down their advance-deposit ratio (ADR) within the regulatory limit as soon as possible. 

April 7, 2024
April 7, 2024

BB's support helping banks avert pre-Eid liquidity crunch

Although banks in the country normally face a liquidity shortage due to cash withdrawals ahead of Eid-ul-Fitr each year, a majority of them have sufficient funds on hand this time around thanks to continuous liquidity support from Bangladesh Bank.

February 21, 2024
February 21, 2024

Padma Bank to turn institutional deposits into preference shares

In a rare move, Padma Bank PLC is going to convert institutional deposits into preference shares and provide them to customers seeking to withdraw funds, exposing how deeper its liquidity crisis is.

January 28, 2024
January 28, 2024

Funds get costlier as liquidity crisis drags on

Both the government and banks are facing a tight liquidity situation, which has pushed up the yield of treasury bills and bonds and the lending rate in the banking sector

January 5, 2024
January 5, 2024

Liquidity crunch widens fault lines in banking system

An intensifying liquidity crisis is making a majority of Bangladeshi banks turn to call money market and central bank

November 15, 2023
November 15, 2023

State banks’ Tk 1,600cr stuck in ailing NBFIs

Deposits of Tk 1,600 crore of four state-run commercial banks —Sonali, Rupali, Agrani, and Janata — have been stuck in several weak non-bank financial institutions (NBFIs) as the latter have repeatedly failed to repay despite maturity owing to a persisting liquidity crisis.

October 17, 2023
October 17, 2023

Banks suffering for growing liquidity stress

A majority of banks in Bangladesh, including some Shariah-based ones, are facing difficulties to run their activities due to a liquidity crisis, according to industry people.

September 16, 2023
September 16, 2023

Liquidity stress at Islamic banks shows no sign of abating

Liquidity in Shariah-based banks in Bangladesh remains tight due to a dip in deposit collection and the banks’ inability to make the most of the central bank support to overcome the situation, Moody’s Investors Service said in a report.

September 14, 2023
September 14, 2023

Islamic banks face liquidity challenges

The Islamic banking sector in Bangladesh continues to face liquidity challenges because of weak governance and regulatory quality, Fitch Ratings said.

August 18, 2023
August 18, 2023

BB asks 5 Shariah banks to resolve liquidity crisis

Bangladesh Bank has directed five Shariah-based banks to resolve their current liquidity crisis while three of them were asked to bring down their advance-deposit ratio (ADR) within the regulatory limit as soon as possible. 

August 13, 2023
August 13, 2023

Most banks in tight spot amid liquidity crunch

A majority of banks in Bangladesh are facing difficulties in running their day-to-day banking activities owing to a tightening liquidity caused by the dragging foreign currency crisis, slower deposit growth and lacklustre loan recovery. 

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