Finance Minister AMA Muhith has told the parliament that Farmers Bank Ltd is now unable to return the deposits of its customers because of a liquidity crisis.
He came up with the statement responding to an inquiry by Jatiya Party MP Selim Uddin during his question-and-answer session in the parliament on Thursday.
Muhith said: “Since launching the operation, Farmers Bank could not follow the regulatory guidelines. The bank's financial base gradually weakened because of various irregularities at the directorial board and management level.
“Although Bangladesh Bank took steps in this regard on several occasions, the overall situation has not improved. Rather it's worsening. The liquidity crisis has been created as the depositors started withdrawing money when information about the bank's financial situation started to leak in different ways.
“To tackle the problems related to liquidity crisis of Farmers Bank, Bangladesh Bank has continued to take different actions, keeping close communication with the government.”
Responding to another inquiry by female reserved seat MP Fazilatunnesa Bappy, the finance minister said: “The claim by different political parties and research organizations regarding a huge sum being siphoned off from Bangladesh is not based on fact. Such an estimate is not consistent with the liquidity of foreign currency existing in the local market over the last few years.
“But no matter how intensive the level of siphoning is, the government agencies concerned are working to stop the possible sources of siphoning.”
The article was originally published in banglatribune.com