Islami Bank Bangladesh PLC, struggling with a severe liquidity crisis, has requested Tk 1,100 crore in loans from Sonali Bank through the interbank market and asked the Bangladesh Bank to issue a guarantee for the loan. This request, made on September 9, follows earlier support provided by Sonali Bank. The central bank has indicated it will offer guarantees to encourage other banks to lend to troubled institutions. Additionally, Islami Bank has sought Tk 5,000 crore in liquidity support under the Standing Lending Facility. The bank has been facing liquidity issues due to significant loan withdrawals by the S Alam Group, which reportedly withdrew over Tk 90,000 crore, representing more than half of Islami Bank’s total loan portfolio. Despite this, the central bank previously provided extensive liquidity support to these banks. On August 22, the central bank removed the S Alam Group’s control over Islami Bank, reconstituting the board and appointing a new chairman. Previously, on December 26, Sonali Bank provided Tk 1,000 crore to Islami Bank under a short-term liquidity facility, which remains unpaid.
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