Eight private commercial banks, including six sharia-based ones, in Bangladesh are facing Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) shortfalls due to a severe liquidity crisis. These banks are grappling with deposit withdrawal pressure and are relying on liquidity support from the central bank. The Bangladesh Bank has imposed fines on these banks, but its priority is to improve their financial health. The banks have been given a deadline until September to address the situation. The liquidity shortage in Islami Bank Bangladesh, the country’s largest private bank, has also affected other sharia-based banks. The financial conditions of Bangladesh Commerce Bank, National Bank, and ICB Islamic Bank have deteriorated due to loan irregularities and scams. The banks’ inability to maintain CRR and SLR indicates a lack of trust and poses risks to depositors’ money. Stricter actions against those involved in loan fraud and irregularities have been suggested by experts.
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