In July, both bank deposits and loan disbursements in Bangladesh saw declines due to political turmoil and economic pressures. Deposits fell by Tk 8,197 crore, reaching Tk 17,34,026 crore, down from Tk 17,42,224 crore in June. Loan disbursements also dropped by Tk 3,882 crore, totaling Tk 20,85,448 crore in July. The decline was linked to curfews, protests, and an internet blackout sparked by the Anti-Discrimination Students Movement. This unrest led to widespread withdrawals as depositors feared extended disruptions. Inflation and monetary tightening further slowed deposit growth, with inflation hitting 11.66% in July before easing slightly in August. Despite higher interest rates, currency held outside banks surged, exacerbating liquidity shortages and pushing call money rates higher. Additionally, a dollar crisis worsened the situation as the interbank currency rate rose significantly.
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