The savings ratio in banking sector has hit an all-time low of 78.76%, posing a threat to the financial health of the banks. As per the central bank’s data, the ratio was 99.8% in March 2021, signaling a significant decline since then. The reserve requirement, designed to protect depositors, has dropped to alarming levels, with the deficit increasing as defaulted loans surge.
At the end of December 2022, defaulted loans amounted to Tk 1.2 trillion, growing by Tk 34.74 billion in the first nine months of the year. The sector’s stressed loans, including defaults and rescheduled loans, now stand at over Tk 3.68 trillion, impacting the overall stability of the country’s banks. Analysts view the declining savings ratio as a danger signal, emphasizing the need for prompt corrective measures to ensure long-term financial health.
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