The liquidity situation in Bangladesh’s commercial banking sector has shown signs of gradual improvement, aided by strategic interventions from the central bank despite ongoing tight monetary policies. Key indicators such as excess liquidity and uninvested cash in banks have reflected this improvement over recent months.
According to Bangladesh Bank data, the amount of uninvested excess cash in the banking system decreased from Tk 116.30 billion in June 2023 to Tk 51.56 billion in January 2024. Subsequently, there was a rebound with figures rising to Tk 84.09 billion by April 2024. Similarly, excess liquidity in commercial banks declined from Tk 1.66 trillion in June 2023 to Tk 1.41 trillion in November 2023, before rising to Tk 1.76 trillion in April 2024.
Anonymous officials from Bangladesh Bank highlighted that this improvement follows months of liquidity tightness, primarily due to stringent policy measures. The central bank’s decision to accept all funding requests from commercial banks has significantly bolstered liquidity injections, reaching Tk 3.63 trillion in January 2024.
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