The government has kept borrowing from the Bangladesh Bank as commercial banks can’t come up with much-needed funds owing to the liquidity crunch.
Cash-strapped banks are borrowing from cash-rich lenders paying more than 9 per cent in interest rate, which is above a cap set by the central bank, as an unprecedented liquidity crunch has hit the banking sector of Bangladesh.
The government continues to borrow from Bangladesh Bank on a large scale as commercial banks are now unable to finance the state due to liquidity crunch.
Restoring equilibrium in both money market and forex market should be the central bank’s singular goal.
The Centre for Policy Dialogue yesterday came down hard on the finance ministry for the host of moves it made earlier this month to
The liquidity crunch that has hit the private sector has its roots in the Farmers Bank debacle. It went down under primarily because the bank management went for giving out wholesale credit without maintaining two fundamentals.
