A good amount of liquidity has to be preserved to keep banks afloat. The overall liquidity position in the banking sector is quite good, but nine banks are facing liquidity crunch.
The Financial Institutions Division informed the IMF team about the liquidity position without naming the nine banks with liquidity crunch.
He said that Sharia-based banks are going through a liquidity crisis as their customers have been shifting their deposits to traditional deposits for the past several months.
The Financial Institutions Division sought time when the IMF delegation sought detailed information in this regard.
Former Bangladesh Bank (BB) governor Salehuddin Ahmed said the division made a good presentation to the IMF. Apart from lack of good governance, there are administrative and management issues in state-run banks. Proper persons are not being recruited to work diligently in the banks.
He blamed the Department of Financial Institutions for the situation as it recommends recruitments.
The former governor also said, “Whatever I heard from the IMF about banking and financial sector reforms, it all seems superficial.” If we take the case of bank directors, instead of four from one family for nine years, there should be a maximum of two family members on the board only for three years.
Expressing disappointment over the draft amendment, he said, “The number is being capped at four, but the nine-year term remains untouched. Is this amendment?
