Dhaka, June 14 -- Bangladesh Bank (BB) has provided an emergency liquidity support of Tk 2,500 crore for Islami Bank Bangladesh PLC to help the Shariah-based lender mitigate its severe cash crunch and resume suspended clearing operations.

The central bank approved the liquidity support on Sunday, allocating the special fund directly into Islami Bank's current account maintained with the BB, according to sources in both institutions.

Following the financial injection, the bank's halted cheque clearing system has resumed.

According to a top executive at Islami Bank, the bank has been facing an exceptional spike in cash demand. "Deposits are almost non-existent at the moment, while everyone is rushing to withdraw their funds," the officia...