Dhaka, Thursday, Apr 16, 2026
Bangladesh Bank has decided to reduce liquidity support to commercial banks from May this year. From 3 May, banks facing liquidity shortages will be able to access only seven-day repo facilities from the central bank. The move is aimed at reducing the flow of liquidity into the market compared to previous levels.Currently, banks can receive liquidity support from the central bank through both seven-day and 14-day repo facilities. Earlier, 28-day repo support was also available, but that was discontinued in April last year.When commercial banks face liquidity shortages, they borrow from the central bank through a facility known as repo. Yesterday, Bangladesh Bank published the Guidelines for Open Market Operations, which state that from 3 May this year only the seven-day repo facility will remain in effect. The new guidelines also stipulate a 5% haircut on the market value of securities.When banks face short-term liquidity shortages, they borrow from the central bank ...
