Despite a rise in deposit rates, currency outside banks has surged to Tk 2.58 trillion, as mattress-money accumulation persists. This trend has compelled bankers to borrow funds at higher costs. After a brief decline, deposit outflow began rising again since November, reaching Tk 2.58 trillion in February. Factors contributing to this surge include increasing yields on government securities, inflationary pressures, and upcoming festivals and wedding seasons. Reports of irregularities in commercial banks since September 2022 also led to deposit outflows, peaking at Tk 2.92 trillion in June 2023. Additionally, higher returns on government securities have diverted funds from banks, while individuals and businesses withdraw deposits for pre-Ramadan expenses amid a higher cost of living.
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