Bangladesh Bank (BB) will not print money to lend to National Bank Limited, opting instead to have the lender secure interbank loans backed by a central bank guarantee to satisfy depositor withdrawals.
Arif Hossain Khan, spokesperson for Bangladesh Bank, confirmed the decision on Thursday (October 8).
The announcement follows instructions issued by Bangladesh Bank Governor Mostakur Rahman directing National Bank to ensure full cash availability across all branches and ATM booths starting October 15, allowing depositors to withdraw funds as needed.
The directive came after a meeting on Thursday between Governor Mostakur Rahman, National Bank Chairman Melita Mehjabeen, and Acting Managing Director Zahidul Huq at the central bank headquarters.
During the meeting, National Bank Chairman Melita Mehjabeen briefed the Governor on the bank's operational status, noting that recent central bank interventions have helped restore corporate governance and bring positive adjustments to sponsor-management dynamics.
Governor Mostakur Rahman emphasized that maintaining public trust in the banking sector and protecting depositor interests remain the central bank's top priorities, prompting the structured liquidity package to stabilize National Bank's operations.