Depositors have nothing to worry about

Bangladesh Bank Governor Md Mostaqur Rahman has assured that the depositors of Islamic Bank Bangladesh Ltd (IBBL) have nothing to worry about and that necessary liquidity supports will be given to the bank.
"They can withdraw money anytime," the governor said Friday, against the backdrop of management shakeups.
His comment came in reply to a newsman's query regarding the bank's failure to pay money to the depositors following withdrawal pressure after alleged government interventions in appointment of the top brass in the largest private bank of the country.
"The central bank has some tools at its disposal. If necessary, they will be used in the next few days," says the governor.
Mr Rahman was replying to queries at a post-budget press conference organised by the Ministry of Finance at the Osmani Memorial Auditorium in the capital.
The governor also rejected allegations of government interference in the appointment process of the managing director of the Islami Bank.
He says the central bank wants to support IBBL. Already various steps have been taken to restore stability in the bank.
In the wake of turmoil regarding appointment of top officials of the bank, panic spread among the depositors and that led to the withdrawal of some Tk 100 billion from the bank, causing liquidity crunch.
The bank was forced to seek Tk 100-billion liquidity supports from the central bank to maintain cash flow.
Regarding the ongoing problems in the country's banking sector the governor says before he took office, one-third of deposits had been stolen and siphoned off abroad.
He says the central bank is working to stabilise some weak banks, including the Islamic banks. So the depositors who are not getting their money back for a long time are now to get money back gradually.
The governor rejects allegations of illegal government interference in IBBL. "We do not ask anyone to give loans, nor do we give any instructions for transfers or promotions. There is no basis for such allegations."
He says there will not be any major problem with the IBBL in the future. The bank's management and board are vigilant about this.
Also, the governor says, the government and the central bank are working with utmost importance to recover the laundered money. A taskforce, along with 10 international organisations, is working in coordination in this regard.

syful-islam@outlook.com