Premier Bank has received Tk 5,000 crore in emergency liquidity assistance from Bangladesh Bank amid a recent outflow of deposits, according to central bank officials.
Bangladesh Bank approved the support last week following withdrawals by a segment of the bank’s depositors, said Executive Director and Spokesperson Arief Hossain Khan.
However, out of the approved Tk 5,000 crore, nearly Tk 4,000 crore was adjusted to cover a shortfall in the bank’s Statutory Liquidity Ratio (SLR), as Premier Bank had fallen below the required threshold.
SLR Shortfall and Regulatory Compliance
The SLR represents the minimum portion of a commercial bank’s total deposits that must be maintained in liquid assets—such as cash, gold, or approved government securities—with the central bank. Under current regulations, conventional banks in Bangladesh are required to maintain 13 percent of their total deposits as SLR.
Officials indicated that the liquidity support was structured to ensure the bank’s compliance with regulatory requirements while stabilizing its short-term funding position.
Leadership Changes and Governance Restructuring
The development comes amid broader structural changes at Premier Bank. Following the political transition last year, Bangladesh Bank dissolved the bank’s board in August and appointed a seven-member panel to oversee operations.
Earlier, long-serving Chairman HBM Iqbal—also a former lawmaker from the Awami League—stepped down in January after serving 26 years in the role.
Attempts to contact Md Monzur Mofiz, Managing Director (current charge) of Premier Bank, for comment were unsuccessful at the time of publication.
Market Implications
While central bank liquidity support is not uncommon during periods of deposit volatility, the significant adjustment toward meeting SLR requirements underscores the regulatory pressures facing banks amid shifting economic and political dynamics.
Industry observers note that ensuring depositor confidence and maintaining compliance ratios will remain critical for Premier Bank in the coming months.
