Cash held outside the country鈥檚 banking system decreased in September after a five-month increase, as depositors began returning their funds to banks amid their improved confidence in good performing banks.
Bangladesh Bank data showed that currency outside banks declined to Tk 2,83,553 crore in September from Tk 2,92,434 crore in August and Tk聽2,91,630 crore in July.
It was Tk 2,90,436 crore in June, Tk 2,70,658 crore in May and Tk聽2,64,349 crore in April.
The trend marks a slight improvement of depositor confidence following months of banking sector instability, bankers said.
They said that depositors were now more inclined to keeping their money in stable banks with fewer controversies and better performance.
Still, the September amount of cash outside banks was very high, they said.
Widespread irregularities in the sector during the recently deposed Awami League鈥檚 rule led to a surge in withdrawals earlier in the year.
The Awami League-led government was ousted by a student-led mass uprising on August 5.
Following the political shift, the interim government restructured the boards of 11 banks.
Despite the return of some cash to banks in September, concerns over the banking sector remain widespread, bankers said.
They said that clients鈥� trust in the banking sector had eroded amid massive loan scandals and irregularities in several banks during the Awami League regime.
Rising living costs also led many people to hold more cash in hand, they said.
Bangladesh鈥檚 inflation remained above 9 per cent since March 2023.
Fixed-income and low-income households, in particular, have been struggling to meet basic needs as commodity prices continued to rise, leading to more withdrawals than deposits.
According to the Bangladesh Bank data, deposits, excluding interbank and government ones, rose marginally to Tk聽17,41,009 crore in September from Tk聽17,31,260 crore in August.
