Bankers express frustration as deposit depletion worsens due to bank merger fears and attractive treasuries, driving away depositors and investors. This trend increases the amount of cash outside banks, raising concerns about liquidity and uninvested funds. While deposit outflows had eased since June 2023, they surged in March 2024, reaching Tk 2.61 trillion, partly due to merger rumors and seasonal factors like Ramadan.
Uninvested credits in bank vaults plummeted from Tk 200 billion in December 2023 to Tk 55.81 billion in March 2024. Merger-related panic withdrawals, combined with investors seeking higher returns in treasuries, exacerbate the situation. Dr. Masrur Reaz attributes deposit flight to inflationary pressures, despite official inflation rates declining. These factors collectively contribute to the growing challenges faced by banks.
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