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The Chattogram Port Authority (CPA) has suspended transactions with nine private banks, including Global Islami Bank and Islami Bank Bangladesh, citing unspecified reasons. The suspension, effective from August 29, involves halting the acceptance of pay orders, cheques, and bank guarantees from these banks. This action may be related to liquidity issues and instability within the banks, some linked to the controversial S Alam Group. The CPA has experienced financial difficulties due to insufficient interest returns on investments with these banks and lack of response to requests for payments. The port authority has reported these issues to the central bank and the concerned ministry, highlighting the impact on ongoing development projects and expressing concerns about the security of its deposits.
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