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বাংলা
Dhaka Tribune

Deposit in banks is rising again

The volume of currency outside the banks was recorded at Tk292,000 crore in June 2023 that declined to Tk266,000 crore in July and Tk258,000 crore in August

Update : 05 Nov 2023, 09:06 PM

Deposits that were withdrawn out of banks' vaults due to credibility issues and lower rates of return have now taken a reverse course and returned to the banking channel, thanks to the Six-Month Moving Average Rate of Treasury Bill (Smart) reference rate.

According to latest statistics of Bangladesh Bank (BB), the volume of currency outside the banks was recorded at Tk292,000 crore in June 2023 that declined to Tk266,000 crore in July and Tk258,000 crore in August.

Now, cash deposits are increasing with people holding on to cash dropping to Tk253,000 crore in September, the Bangladesh Bank data also showed.

As per the central bank data, the total volume of deposit increased by 9.50% on a year-on-year basis in September 2023.

According to officials and bankers, such reversal comes as a matter of blessing for the banking sector that now passes through a tough time because of looming major liquidity crunch amid central bank's recent belt-tightening steps to squeeze fund supply into the money market to tame inexorable investment.

They also said that the qualified freedom to banks under the uncapped-interest regime leads to rise in the deposit rates, which started alluring the potential depositors to come back into the banking channel, especially when the window for investment continues shrinking ahead of the national election.

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