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FBCCI president lauds liquidity measures by BB

  • Special Correspondent
  • 24 March, 2020 12:00 AM
  • Print news

FBCCI President Sheikh Fazle Fahim on Monday termed the central bank’s decision to buy the treasury bills and bonds from banks and non-bank financial institutions (NBFIs) to handle any liquidity crisis as a landmark step.

The Bangladesh Bank on Sunday in an unprecedented move decided that the government securities from the secondary bond market will be purchased so that liquidity management of banks and the NBFIs do not face any major challenges due to the situation arisen from coronavirus.

Under the decision the banks will be allowed to sell their T-bills and bonds after holding their statutory liquidity ratio (SLR). Lenders hold the majority of the excess liquidity in the form T-bills and bonds.   As of December last year the excess liquidity in the banking sector stood at Tk 105,646 crore, according to the central bank.