Increased deposit rates prompted a surge in bank deposits by over Tk 370 billion in the first half of the current FY 2023-24, reversing the trend of currency hoarding. Central bank data shows currency outside banks decreased by around 13%, standing at Tk 2.55 trillion by December 2023. The surge in deposits follows reports of irregularities in some banks, leading to a record-high outflow in June 2023.
The Bangladesh Bank’s SMART rate regime contributed to this rebound, enticing depositors amidst shrinking investment options. Bank deposits have steadily increased, reaching Tk 16.54 trillion in December 2023, up 11.04% from the previous year. With deposit rates surpassing 9.30%, confidence in banks is growing, reducing reliance on informal savings.
Source for more details:
