The supposed balance order of deposits and loans has broken down in 17 banks. Several conventional and Shariah-based banks have made aggressive loans. It has exceeded the boundaries imposed by the Bangladesh Bank. As a result, the affected banks are experiencing a severe liquidity crisis.
This information was found in the most recent Bangladesh Bank report. Analysts think that the current situation has increased the hazards for depositors. They claim that irregularities, corruption, and unnamed loans are to blame for the bank’s credit system collapsing.
According to the rules of Bangladesh Bank, conventional bank has an ADR of 87 % while it is 92% for Islamic bank. But according to the Central Bank’s assessment, the conventional style ADR of the National Bank was at 98.23 % on January 1. Another bank’s ADR in both streams sits at 96.64 and 103.45 %, state-owned Basic Bank 91.17 %, One Bank 89 %, and foreign National Bank of Pakistan ADR 87.52%.
Aside from that, Exim Bank’s ADR is 100.28%, Standard Bank’s is 96.28%, Premier Bank’s Islamic Window is 155.09%, and Bangladesh Commercial Bank’s Islamic Window is 103.45%. Aside from that, the ADR of five other Shariah-based banks was 104.54, 102.27, 100.41, 96.81, and 93.01 percent, respectively.
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