Most banks in Bangladesh have excess liquidity, while struggling banks are seeking support from the central bank due to insufficient collateral. This has led to a significant decline in interbank borrowing, which fell to 16,358 crore BDT in early October, down from 23,442 crore BDT in September. Experts indicate that poor investment conditions are reducing cash demand from businesses.
Currently, imports average $5 billion monthly and exports are at $3 billion, half of what they were two years ago. Despite reports of a liquidity crisis, 46 banks have excess liquidity totaling 190,307 crore BDT. Only a few banks are experiencing genuine liquidity shortages due to mismanagement, while most banks have ample funds and are seeing daily deposit increases.
The central bank is providing guarantees to struggling banks, and this situation is expected to stabilize soon. Regulations require banks to keep a portion of deposits as Statutory Liquidity Ratio (SLR) with the central bank, and compliance is monitored to ensure customer fund security. Overall, the interbank borrowing market, known as “call money,” is influenced by demand fluctuations, and the economy is recovering from global recession impacts, according to an IMF report.
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