Liquidity support to some crisis-stricken banks may be ramped up through a new mechanism, the central bank says and assures depositors of their money's security.
The cash-hungry commercial lenders have already availed nearly Tk 56 billion from well-off banks under regulatory guarantees.
Spokesperson for the Bangladesh Bank (BB) Husne Ara Shikha disclosed the present plans at a press conference held at the central bank headquarters in Dhaka on Wednesday.
"We've continued liquidity support to the troubled banks. We may think about enhancing such liquidity support with new mechanism," Ms Shikha told reporters at the press briefing.
The spokesperson wouldn't, however, explain the new mechanism.
She mentioned that high-ups of the crisis-hit commercial lenders had already advised the central bank governor to revisit the ongoing liquidity-support mechanism to make the policy successful.
The Department of Offsite Supervision of the central bank has already developed the mechanism for capital support to the cash-strapped banks under the guarantee scheme.
Ms Shikha, also an executive director of the central bank, advises depositors to withdraw money gradually within their needs rather than reacting to unfounded fears.
The central bank also suggests people not to withdraw money from one bank and deposit with another, under the current circumstances of restoring order in previously distorted banking.
"If such tendency can be overcome, the situation will improve immediately," the BB spokesperson notes.
All deposited money in banks is guaranteed, and there is no reason to panic or make unnecessary withdrawal, she said, urging the public to keep calm.
Seven crisis-hit banks had received liquidity support worth Tk 55.85 billion from nine well-off banks until November 05 in the bailout process, according to the central bank's statistics.
Earlier at a meeting on Monday, the top executives and board members of six troubled banks urged the central bank to arrange immediate disbursement of more cash supports to resolve the ongoing crisis.
Currently, a section of troubled banks faced difficulties in handling customers rushing to withdraw their money out of heightened panic, which ultimately further widens their woes.
At the press briefing, the spokesperson also said three taskforces were now working on reform in banking system, capacity building of the central bank and bringing back laundered money.
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