The government has finalized a USD450mn borrowing, equivalent to BDT55.22bn, from the World Bank to strengthen the financial sector and rebuild the deposit-protection system.
A USD101mn technical assistance project forms part of a USD452.36mn operation, for which the World Bank approved USD450mn in credit in June. Of the credit, USD340mn will be released against 24 actions under eight groups of banking reform conditions and deposited in the Deposit Protection Fund.
The government must amend the Deposit Protection Act before withdrawing the amount, to clarify the fund’s use in bank resolution, while Bangladesh Bank must establish an adequately staffed Deposit Protection Department.
https://www.newagebd.net/post/banking/312919/wb-gives-450m-to-repair-banking-sector-damage
