BB continues liquidity support to cash-strapped banks
Dhaka, Feb. 19 -- Liquidity feeding into credit-hungry banks marks a significant rise amid major liquidity crunch facing the industry, officials say, notwithstanding the central bank's contractionary monetary stance.
As the buildup of pressure on the overall liquidity in the banking sector continues following the contractionary monetary stance taken by the Bangladesh Bank to combat inexorable inflation, sources at the BB have said, the commercial banks raise interest rates in their hunt for deposits. But the gradual increase in banks' deposit portfolios cannot alone help them navigate the existing liquidity tightness.
As a matter of fact, they explain, fund-requirement appeals from the commercial lenders to the banking regulator keep su...
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