TBT Desk: Deposits in Bangladesh's banking sector have seen a notable increase over the past six months, with Tk 34,500 crore returning to the system between July and December. This rise has brought total deposits to Tk 17,77,315 crore by the end of December, according to the latest report from Bangladesh Bank.
The report indicates that at the end of June, total deposits stood at Tk 17,42,798 crore. Over the following six months, deposits grew by nearly 2 per cent.
At the same time, the total amount of loans disbursed by banks reached Tk 17,02,589 crore, meaning that 96 per cent of the available deposits had been distributed as loans.
The report also highlights a significant reduction in the amount of cash held outside the banking system. At the end of June, individuals held Tk 2,90,436 crore in cash outside banks, a figure that had fallen to Tk 2,76,341 crore by December. This suggests that approximately Tk 14,000 crore has returned to the formal banking system over the six-month period.
Analysts suggest that the rise in deposits is linked to recent political and economic developments. In the aftermath of student-led protests and political unrest in July and August, concerns over the stability of several banks prompted many customers to withdraw their savings. However, as stability returned and banks increased interest rates on deposits, public confidence has gradually been restored, encouraging individuals to return their money to the banking system.
With both deposits rising and the volume of cash outside banks shrinking, financial experts believe the trend could continue, provided economic stability and investor confidence remain intact.