Don’t panic

The Bangladesh Bank yesterday assured the depositors of People's Leasing and Financial Services (PLFS) not to worry about their money as they would be getting it back within the shortest possible time.

"Depositors have no reason to be worried," said Md Shah Alam, executive director of the central bank, at an emergency news briefing at its headquarters.

The central bank will act in line with the decision of the High Court to liquidate the non-bank financial institution so that depositors can get back their fund within a shortest possible time.

It has already started discussions with lawyers.

 "The central bank will liquidate the non-bank financial institution for the greater interest of depositors," Alam said. When probed what would the BB do if PLFS's assets turn out to be worth less than what depositors are owed, he said the High Court would give a verdict to this end.

Alam also said the central bank can't be blamed for the current state of PLFS.

"We have not left any stone unturned to protect the NBFI. We unearthed financial scams and took action against the alleged persons on time."

Asked whether the central bank would follow the same liquidation process for some other NBFIs that are now unable to pay back their depositors, he said that some went through liquidity crunch but none failed to repay.

"The central bank is now working to protect the interest of all NBFI depositors."

Md Shafiqul Islam, spokesperson of the central bank and also an executive director, also spoke at the event.