The Bangladesh Bank governor reassured that no business organization’s bank accounts have been frozen on the central bank’s orders and reaffirmed a major banking-sector reform plan. To boost depositor confidence, the deposit insurance coverage was doubled to Tk 0.2 million, ensuring 94.60% of depositors’ money is guaranteed in case of bank liquidation. Despite concerns about 9-10 banks being near insolvency, the central bank is engaged in intensive efforts, including potential mergers, to stabilize them. A holistic reform of the banking sector is underway, with plans to form three taskforces within 10 days to address challenges and review policies from the previous government that may have favored certain businesses. The governor also addressed misinformation about account freezes, stating that any actions were taken independently by banks, not directed by the central bank. Additionally, potential changes to the Banking Companies Act were hinted at to further regulate the sector. The central bank clarified that it would not be responsible for issues related to the purchase of assets from a controversial conglomerate, placing the onus on the buyers.
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