Eastern Bank : Our banking system is safe, no need to press the panic button | Techy Kings


Ali Reza Iftekhar

In the face of the coming global recession and gloom, we need to strike a balance by carefully monitoring the current situation and supporting business flows and sustainability at the same time.

There are rumors circulating across social media platforms that our banking system is facing a severe liquidity crisis, creating a worrying situation, especially for depositors, as they are the main fund providers of the banking system.

However, these rumors are baseless and without merit, and depositors need not panic because their money is completely safe in the banking system.

What I believe is- this rumor is deliberately spread by the rightful party with the intent to deceive. In fact, the other day, the country’s central bank published a statement to dispel rumors of any liquidity crisis in the banking system and informed everyone that there is sufficient liquidity – Tk1.70 trillion to be exact, in excess liquidity.

I appreciate the initiatives taken by Bangladesh Bank in recent months in managing the flow of imports and other measures such as allowing 50% of the ERQ (Export Retention Quota) account, placing funds from OBU (Offshore Banking Unit) to DBU (Digital Banking Unit). , reducing the NOP (Net Open Position) limit from 20% of regulatory capital to 15%. These measures have certainly brought some much needed liquidity in the foreign exchange market.

We are serving our customers by opening LC (Letter of Credit) but under the current scenario, we are strictly monitoring the revenue flow on a case by case basis. And I’m optimistic that the economy will change and move on from the current situation.

In the face of the global recession and the coming gloom, I believe we need to strike a balance by carefully monitoring the current situation and supporting business trends and sustainability at the same time.

Bangladesh is going through difficult times due to the Russia-Ukraine war, supply chain disruptions and balance of payments deficit. Even so, economists predict the country’s current economy may be under pressure, but not in crisis.

Bangladesh is known for its resilience during many adverse situations in the past, such as the RMG quota-free regime, the Rana Plaza tragedy, the rise of extremism and terrorist attacks and the Covid-19 pandemic, to name a few.

Being the world’s second largest garment exporter, second largest producer of freshwater fin fish and third largest producer of vegetables and with the opening of the Padma Bridge and the country’s largest economic zone at Mirershorai, Chattogram on the horizon, things are sure to change for the better for Bangladesh.

We, the banking community, will be partners in the advancement of the rebranding of ‘made in Bangladesh’ and the Fintech movement. Depositors and investors need not panic because their hard earned savings are safe in the banking system.

Ali Reza Iftekhar is the Chief Executive Officer and Managing Director of Eastern Bank Limited.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of The Business Standard.

Link: https://www.tbsnews.net/thoughts/our-banking-system-safe-there-no-need-press-panic-button-535222


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