Acute liquidity crisis
Staff Correspondent: Banks are already in liquidity crunch due to the contractionary monetary policy of the central bank. Meanwhile, the government has to give loans to meet the daily expenses. In such a situation, commercial banks and financial institutions are taking short-term loans from the money market to meet the shortage of cash.
It has been reported from Bangladesh Bank that they borrowed Tk 23,240 crore in one day last Wednesday. 6.75 percent to 8.50 percent interest has been levied against this loan for a period of 1 to 14 days.
An official of Bangladesh Bank told Daily Industry that the government has a financial deficit, which is the first in the history of the country’s independence. Again, Bangladesh Bank has stopped giving loans to the government by overprinting money from last October.
All these have had a negative impact on the entire economy. To handle this, the government is taking loans from commercial banks, which has resulted in liquidity crunch in many commercial banks. He said that about two dozen banks, including some special Shariah banks, are trying to retain the trust of customers by borrowing from call money.
Spokesperson and Executive Director of Bangladesh Bank Majbaul Haque said the government is more inclined to borrow from commercial banks to meet its daily cash needs.
This has created a liquidity shortage in many banks, which are meeting demand with short-term loans from the money market and Bangladesh Bank is now giving hundred percent support.
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