BB clarifies no business accounts frozen

TDS Desk:

At least 10 banks are teetering on the edge of bankruptcy, said Bangladesh Bank Governor Ahsan H Mansur.

To save those banks from being bankrupt, the central bank is working due process, he said at a press conference held on Sunday at Bangladesh Bank.

“We do not hope for any bank to go bankrupt, but 10 banks are in such a dire state that bankruptcy is a possibility. The government is doing its best to save them,” Governor Mansur said.

He stated that efforts are underway to assist these struggling banks through technical, advisory, and liquidity support.

“We aim to prevent any bank from closing. We will give top priority to safeguarding customer interests,” he said.

Addressing concerns over the freezing of bank accounts, the Governor clarified that no institutional accounts have been seized, including those belonging to S Alam Group or Salman F Rahman.

“So far, only personal accounts have been frozen. We do not want to interfere with any business organization, as it could disrupt employment and production,” he said.

“Business operations will continue as usual, and salaries of employees will be paid,” he added, dispelling rumors and misinformation that have surfaced regarding account freezes.

Governor Mansur also issued a caution about buying S Alam’s property by anyone. “Anyone purchasing assets from S Alam should do so at their own risk, as there are no guarantees regarding ownership.”

To reassure depositors, he announced that deposit insurance coverage has been raised from Tk100,000 to Tk200,000, which will protect 95% of customers in the banking sector. “No country can guarantee 100% protection for depositors’ money, and we cannot either,” he added.

However, small depositors would receive their money back immediately if any bank went bankrupt, he said.

Governor Mansur informed that a task force will be formed within 10 days aimed at restoring depositor confidence. “There is no need to panic,” he added.

He also pointed out that Bangladesh Bank holds Tk25,000 crore in SME funds, but distribution has been inadequate. Banks have been instructed to identify the obstacles preventing small entrepreneurs from receiving loans.

The central bank remains committed to stabilizing the banking sector and ensuring the protection of depositors’ interests as reforms continue.