2024 April 24 20:40:08
Own Correspondent: Due to lack of liquidity, Bangladesh Bank continues to provide loans to commercial banks. In an auction on Tuesday (April 23), 32 banks and four non-banking financial institutions (NBFIs) borrowed Tk 13,200 crore from the central bank through repo and liquidity support facilities.
A senior official of the central bank said that amid the liquidity crisis in the banking sector, banks have been receiving liquidity support from the central bank every working day for the past few months.
He said, now the central bank has reduced the liquidity support to the banks. Liquidity support through repo will be weekly instead of daily from next July.
Commercial bankers say high inflation, foreign exchange crisis, rising interest rates on government treasury bills and increase in policy rates have created a liquidity crunch in the overall banking sector.
They said that some banks are now investing in treasury bills with liquidity support from the central bank. Because the interest rate on treasury bills has exceeded 11 percent.
In Tuesday’s auction, 18 banks and four NBFIs took Tk 7,563 crore through the seven-day repo facility. Besides, 14 banks have taken Tk 5 thousand 457 crore through one day liquidity support facility. Its interest rate was 8.10 percent and 8 percent respectively.
Not only the central bank, banks are also going to the call money market to borrow money.
ShareNews, 24 April 2024
Tags: Bangladesh Bank lent crore day
