Accounts worth crores of rupees
Amid the country’s sluggish business environment, the number of bank accounts with deposits of more than Tk 1 crore increased by nearly 5,000 in December. According to Bangladesh Bank, the number of such accounts reached 1,22,081 at the end of December, up from 1,17,127 in September. The number was 1,18,784 in June and 1,15,890 in March. After speculation of political changes last August, there was some panic among depositors when information about good governance, financial stability and corruption in the banking sector came to light. This fear increased due to the reorganization of the boards of directors of some banks, which had an impact on the decline in the number of high-value accounts in September.
Accounts worth crores of rupees
However, with a gradual improvement in business activities from October, depositors started bringing money back to the banks. The country’s economic situation also played a role in this trend. Due to high inflation, unstable foreign exchange markets and limited investment opportunities, wealthy people are choosing to keep their money in banks rather than finding alternative investments. Deposits have also increased due to tighter controls on money laundering.
Central bank liquidity support has also played a role in the increase in deposits. Bangladesh Bank has provided credit support to distressed banks, which has added liquidity to the banking sector and indirectly helped in deposit collection.
However, despite the increase in the number of high-value accounts, most bank accounts in the country hold small amounts of money. Out of 163.2 crore bank accounts nationwide, 118.1 crore have less than Tk 5,000 in deposits. In contrast, accounts with deposits of more than Tk 1 crore constitute only 0.075 percent of the total accounts, but about 41 percent of the total deposits are deposited in these accounts.
