• Thursday, Jun 24, 2021
  • Last Update : 02:50 am

The liquidity situation in Apr-Jun was fine thanks to easy monetary policy

  • Published at 12:06 am November 18th, 2020
Bangladesh Bank (BB) logo
Bangladesh Bank (BB) logo

Says BB’s financial stability report on the quarter

There was no abrupt volatility in liquidity during the April to June quarter owing to the easy monetary policy adopted by the Bangladesh Bank, according to the central bank’s financial stability assessment report that was released on Tuesday.

The industry maintained a strong capital position, which is much higher than the minimum regulatory requirement, it said.

The lockdowns around the globe took a heavy toll on the country’s export growth, which recorded a sharper decline than imports and thus widened the country's current account deficit. 

However, a pickup in exports near the end of the quarter is expected to ease the pressure on the current account balance in the coming days. 

As the debt servicing capacity of borrowers eroded amidst the COVID-19 crisis, banks' profitability was on the decline, as per the report. 

While gross default ratio decreased mainly due to the BB's policy relaxation to tackle the adverse impact of COVID-19, strict monitoring of stressed assets would be key to maintaining asset quality once the relaxation is over, it also said. 

According to the report, the capital base known as capital to risk-weighted assets ratio of 23 banks would fall below the minimum regulatory requirement if the top three borrowers of the entities turn into defaulters. 

“Like other economies, the Bangladesh economy is facing an unprecedented shock due to the worldwide outbreak of the COVID-19 pandemic.”

To overcome the possible negative impact of the pandemic on the economy, the BB has taken a host of instant and proactive measures that facilitated the attainment of 5.2 per cent GDP growth last fiscal year amidst the pandemic, the report added.

50
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail