The central bank has extended Tk 22,000 crore in emergency funds to seven struggling banks, including five Islamic banks, ahead of year-end to bolster their balance sheets. Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, Padma Bank, and National Bank received the funds at 9.7% interest for three days, secured by a demand promissory note due to a lack of collateral. This exceptional support aims to help banks meet mandatory cash and liquidity requirements, preventing a hit to depositor confidence. Only First Security Islami Bank remains in deficit, given three months to resolve it. Analysts stress the need for banking reforms before such liquidity support is granted.
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