Bangladesh Bank to Start Disbursing Deposits from 15 October

National Bank, a struggling commercial bank in Bangladesh, will start disbursing deposits to its customers from 15 October, with withdrawal applications opening on 11 October. The move comes as part of efforts to resolve a liquidity crisis that has left many depositors unable to access their funds.

Bangladesh Bank (BB), the country's central bank, will provide up to Tk10,000 crore in support through other banks acting as guarantors. This arrangement aims to ensure that National Bank has sufficient funds to meet withdrawal demands. The central bank's intervention follows months of financial turmoil at National Bank, which has been plagued by high non-performing loans and governance issues.

The disbursement process is expected to restore some confidence in the banking sector, but challenges remain. Analysts warn that the guarantee may strain other banks and highlight systemic risks. Depositors are advised to submit applications promptly, while BB continues to monitor the situation and may adjust its support as needed.