Bangladesh’s non-bank financial institutions (NBFIs) experienced a decline of 47,604 depositors in the June quarter, extending a downward trend that has persisted since September 2022. Central bank data reveals that the number of depositors dropped from 7.62 lakh in June 2021 to just 3.80 lakh by the end of June 2023.
The decline is attributed to factors such as corruption, irregularities, and poor governance, which have undermined public trust in NBFIs. Despite an increase in total deposits to Tk 45,116 crore—a 1% rise from the previous year—many institutions face significant challenges, leading to withdrawals rather than new deposits.
Experts suggest that the ongoing issues are exacerbated by the Bangladesh Bank’s conservative policies post-Covid, which are hindering even well-performing institutions. Calls for a reevaluation of these policies have emerged as the sector struggles to regain stability and customer confidence.
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