10 banks on brink of bankruptcy: Governor

Bangladesh Bank (BB) Governor Ahsan H Mansur said that at least 10 banks are on the verge of bankruptcy.

He came up with the remark during a press conference held at Bangladesh Bank on Sunday (September 8).

The central bank is implementing measures to prevent their collapse, including providing technical, advisory, and liquidity support. Efforts are focused on protecting customer interests and preventing any bank closures.

He said, "To save those banks from being bankrupt, the central bank is working due process".

Governor Mansur also addressed concerns about account freezes, clarifying that only personal accounts have been affected, and business operations, including those of S Alam Group or Salman F Rahman, remain unaffected. He warned buyers of S Alam's assets to proceed at their own risk.

"So far, only personal accounts have been frozen. We do not want to interfere with any business organization, as it could disrupt employment and production," he said.

"Deposit insurance coverage has been increased from Tk100,000 to Tk200,000 to protect 95% of customers. A task force will be formed within 10 days to restore depositor confidence." he added.

However, he also assured that small depositors would receive their money back immediately if any bank went bankrupt.

Additionally, the central bank holds Tk25,000 crore in SME funds, with plans to address distribution issues for small entrepreneurs.