Bangladesh Bank Governor Dr. Ahsan H. Mansur assured depositors of the safety of their funds on Sunday, reiterating the central bank’s commitment to significant reforms in the banking sector.

At a press briefing held at the Bangladesh Bank headquarters, Dr. Mansur emphasized that no business organization’s bank accounts had been frozen under the bank’s directives, addressing concerns raised by misinformation circulating in recent days.

He reassured the public, stating, “There is no worry for the depositors who should be patient and keep their faith in the ongoing reform activities in the sector.”

To bolster depositor confidence, Dr. Mansur announced that the central bank had doubled the coverage under the deposit insurance scheme from Tk 0.1 million to Tk 0.2 million. This expansion will ensure that 94.60% of depositors will have their funds protected in the event of a bank’s liquidation.

Deposit Insurance Systems are designed to safeguard depositors’ interests, providing compensation if a bank or financial institution becomes insolvent or cannot return customers’ deposits. Dr. Mansur expressed his optimism that no bank would reach bankruptcy under the current reform plan, as near-insolvent institutions would receive government support.

However, he acknowledged that 9-10 banks face significant financial distress. “We’re in an intensive program with them. We’ll go for a merger if needed,” the governor stated, highlighting the central bank’s focus on stabilizing these institutions and preventing further deterioration in the sector.

Dr. Mansur detailed plans for a comprehensive overhaul of Bangladesh’s banking industry. As part of these efforts, the Bangladesh Bank will form three task forces within the next 10 days to tackle the sector’s challenges. These task forces will not only address existing problems but also review policies implemented by the previous Awami League-led government.

“If the task force finds any policy formulated only for benefitting a certain group of businesspeople, they will take action to discard those,” Dr. Mansur said, indicating that any policy benefiting select business interests at the expense of the broader economy would be scrutinized.

Addressing concerns about frozen accounts, Dr. Mansur firmly denied that any business organization’s accounts had been blocked at the central bank’s request. “Be it any business organization, they will continue as usual. The salaries of their officers and employees will be paid,” he reassured.

The governor suggested that some banks may have acted independently in freezing accounts but emphasized that the central bank had not issued any such directive. He called for businesses to continue their operations without fear of disruption from the central bank.

Responding to inquiries about the S. Alam Group, which has been the subject of intense scrutiny, Dr. Mansur clarified that the central bank would not be liable for any issues from purchasing the group’s assets. “The responsibility entirely lies with the buyers,” he said, clarifying that the central bank will not intervene in transactions related to the conglomerate.

Dr. Mansur also hinted at potential revisions to the Banking Companies Act, suggesting that changes could be made to bring further stability and order to the sector. The central bank is prepared to take additional legislative steps to support the banking reform agenda if needed.