No more support to weak banks by printing money: Governor

Bangladesh Bank Governor Dr Ahsan H. Mansur has asserted that the central bank will not provide liquidity support or other facilities to weak banks anymore by printing money.

“The depositors have the right to withdraw money from the ailing banks and the banks will be liable if they have lost confidence of their clients. If depositors withdraw money from a bank occupied by S Alam, it is the result of their actions. We have nothing to do about it, because depositors have the right to decide where to keep their money in banks,” he said.

The governor stated it at a press conference held after a meeting with a delegation of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the Bangladesh Bank head office at Motijheel in the city on Tuesday.

While addressing the press conference, Ahsan H. Mansur said BB would take strict action against the persons involved in any irregularities.

“Action will be taken against irregularities but it will be against the person involved, and not the organisation. Because every organisation involves many employment issues,” he added.

Regarding Non-Performing Loans (NPLs), the Governor said, “We want to adopt international standards regarding NPLs.”

“Traders have asked for some time to implement this, claiming it will affect export-import. We have said we will discuss it with the IMF, but there is no doubt that we will adopt international standards,” he added.

Asked whether the Tk 1,000 banknote will be cancelled, the governor said the Bangladesh Bank has made no such decision.

Asked whether the photo of Bangabandhu Sheikh Mujibur Rahman would be discarded and banknotes signed by new governor would come to the market soon, Ahsan H Mansur said notes would be printed when it will appear necessary and signatures will also go there.

The Bangladesh Bank Governor said the business leaders insisted on reducing inflation. In reply, the Bangladesh Bank has assured them.

He said the current monetary policy is working well. It will be contracted further, but not too much. If it continues, the inflation will go down within teh next seven to eight months. “We hope that the inflation will go down to 5 to 6 per cent,” he said.

Among others, FBCCI president Mahbubul Alam, FBCCI former president Abdul Awal Mintu, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) executive president Mohammad Hatem, Metropolitan Chamber of Commerce and Industry (MCCI) president Qamran T Rahman, Dhaka Chamber president Ashraf Ahmed and BTMA president Shawkat Aziz Russel attended the meeting.

At the meeting, they demanded punishment of the people who scammed and looted banks in the name of doing business.

Talking to reporters, Abdul Awal Mintu said if the government cannot able to ensure punishment against the people who looted banks and acquired wealth illegally, then the good businessmen will not run their business.

“I have requested the Governor to take strict action against them who acquired wealth illegally and didn’t return bank money,” he added.