STAFF CORRESPONDENT

The Bangladesh Bank is set to rescue problem banks including some Shariah-based banks controlled by S Alam Group by managing liquidity or merging a few.

For instance, Exim Bank has already been provided with Tk 1,000 crore special liquidity support from the central bank for 90 days, documents show.

The condition of a few crisis-hit banks is at the stage of bankruptcy but the government has no plan to declare them bankrupt, said BB Governor Ahsan H Mansur at a press conference yesterday.

Those banks can stage a comeback if they get policy support from the central bank, he said, adding that the BB will revive them by merging with stronger ones.

The central bank will not provide liquidity support by printing money as before but those lenders can avail such support through inter-bank money supply, with the BB acting as the guarantor of the ailing banks.

So far, seven of the ailing lenders, whose boards were reconstructed recently, verbally requested the central bank for liquidity support to repay the depositors’ money.

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