Surplus liquidity in the country's banking sector has increased, reaching Tk442,000 crore.
Due to sluggish credit demand in the private sector, banks are disbursing less money as loans compared to the deposits they receive.
Consequently, idle money is accumulating, and the advance-deposit ratio (ADR) is on the decline.
According to Bangladesh Bank's "Major Economic Indicators" report for September, the total liquidity of the banking sector stood at Tk7,81,214 crore at the end of last August.
Against this, the statutory minimum liquidity requirement was Tk339,260 crore.
As a result, the surplus liquidity stands at Tk441,954 crore.
According to the report, conventional private commercial banks hold the highest amount of surplus liquidity.
At the end of August, the surplus liquidity in these banks stood at Tk271,691 crore.
Meanwhile, state-owned commercial banks held surplus liquidity worth Tk140,835 crore.
However, this liquidity is not distributed evenly across all banking institutions.
Due to irregularities and weak financial positions, several banks continue to suffer from a liquidity crisis.
On the other hand, the credit-to-deposit ratio (advance-deposit ratio) in the banking sector is continuously dropping.
Bangladesh Bank data reveals that the ratio was 80.38% at the end of December 2023.
Although it rose to 81.32% in September 2024, it later began to decline.
By September 2025, it dropped to 78.28%, and by the end of December that year, it fell further to 77.72%.
By the end of March this year, it stood even lower at 75.80%.
According to bankers, as private sector credit demand remains weak, banks are unable to accelerate new loan disbursements as expected.
Consequently, a portion of the surplus money is being invested in government treasury bills and bonds, while some funds remain idle in bank accounts.
