BSS-36 Sheikh Fahim lauds BB’s liquidity measures

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BSS-36

FAHIM-BB-LIQUIDITY

Sheikh Fahim lauds BB’s liquidity measures

DHAKA, March 23, 2020 (BSS) – FBCCI President Sheikh Fazle Fahim today
lauded central bank’s decision of buying treasury bills and bonds from banks
and non-bank financial institutions (NBFIs) to handle any liquidity crisis.

“The move is praiseworthy as it will assist in ensuring liquidity for banks
and the NBFIs to extend support in the form of soft loans as needed for
businesses — from micro and small and medium to larger sectors — which are
hard hit by the coronavirus pandemic,” Fahim said in a statement.

Bangladesh Bank (BB) on Sunday in an unprecedented move decided that the
government securities from the secondary bond market will be purchased so
that liquidity management of banks and the NBFIs do not face any major
challenges due to the latest situation caused by coronavirus outbreak.

“During this difficult time such measures would encourage the
entrepreneurs,” said FBCCI president terming this move as a landmark step.

“On behalf of the businesses, I express my deepest gratitude towards Prime
Minister Sheikh Hasina and the concerned political and government leadership
for such effective measures,” he added.

Under the decision, banks will be allowed to sell their T-bills and bonds
holding their statutory liquidity ratio (SLR). Lenders hold the majority of
the excess liquidity in the form of T-bills and bonds. As of December last
year the excess liquidity in the banking sector stood at Taka 105,646 crore,
according to the central bank.

Fahim said central bank’s move came as a renewed attempt to keep the
country’s economy in order, despite the challenges it is facing to fight
against COVID 19.

BSS/PR/MAK/ARS/2024 hrs