Premier Bank gets Tk 5,000 crore in liquidity support from BB

Premier Bank has received Tk 5,000 crore in emergency liquidity support from Bangladesh Bank (BB) amid a deposit outflow.

The central bank approved the support last week following the withdrawal of some of Premier Bank’s deposits, said BB Executive Director and Spokesperson Arief Hossain Khan.

However, of the Tk 5,000 crore, nearly Tk 4,000 crore was deducted to meet its SLR (Statutory Liquidity Ratio) requirements, as the bank had fallen short of the SLR, according to the spokesperson.

The SLR is the minimum percentage of deposits that a commercial bank must maintain in the form of liquid cash, gold, or other approved securities with the BB. Conventional banks are required to maintain 13 percent of their deposits as SLR.

The Daily Star tried to reach Md Monzur Mofiz, managing director (current charge) of Premier Bank, for comment via phone and text message. He did not respond until the report was filed.

Following the political changeover, the BB dissolved Premier Bank’s board in August last year and formed a seven-member panel.

The private bank’s former chairman and former Awami League lawmaker, HBM Iqbal, stepped down in January last year after holding the position for 26 years.