Business Desk :
Deposit growth in Bangladesh’s banking sector has decelerated for the third consecutive month, reflecting mounting economic pressure and a persistent crisis of confidence among depositors, according to the latest Bangladesh Bank data released Wednesday.
At the end of October, deposit growth fell to 9.62%, down from 9.98% in September and 10% in August. The central bank’s report shows total deposits stood at Tk1,924,000 crore in October, compared to Tk1,755,000 crore during the same month last year. Bankers say the slowdown exposes a widening gap between well-performing banks and those struggling with fragile balance sheets.
Bank Asia Managing Director Sohail RK Hussain said depositors are increasingly shifting their funds toward stronger banks.
“Many customers’ money is stuck in weak banks. This has increased deposits in good banks, but the crisis in weak banks remains as before,” he noted.
Economists attribute the sluggish growth to prolonged economic stress, persistent inflation, and rising unemployment all of which have reduced households’ ability to save. Former World Bank economist Dr. Zahid Hussain said the capacity of ordinary people to save has weakened significantly, even though remittances continue to play a key role in deposit accumulation.
“Remittances are still supporting deposit growth, but the general public’s ability to save at the end of the month has decreased,” he said.
Bangladesh Bank data also shows that money in circulation dropped to Tk270,000 crore in October, a sharp decline of Tk736,000 crore from a year earlier. However, experts caution that this fall does not necessarily mean the withdrawn cash is flowing back into the formal banking system.
Since the central bank does not disclose where this money is moving, analysts speculate that a portion may be entering retail trade, informal markets, or various non-bank financial channels.
Overall, experts believe the slowing deposit growth highlights two interconnected challenges: ongoing economic hardship and a lingering lack of trust in the banking sector, especially among weaker institutions still struggling to regain depositor confidence.
