People are continuing withdraw money from banks and hold themselves following rumor of bank fallout, dollar crunch and sharp rise of inflation rate, industry sources said.

The trends intensified after a news spread that a large group siphoned off about Tk 10,000 crore from five Islamic banks.

“Until last November, the customers temporarily withdrew from the bank and kept about two and a half lakh crores of taka in their hands” a source at Bangladesh Bank told Business Mirror.

The amount increased further in the December. “ Never before did customers withdraw so much money and keep it in their hand.” The source added.

An expert on monetary policy Abdul Awal told Business Mirror that “The rise of money withdrawal from banking system the  money in the hands of the customers is not contributing to the economy either.” Meanwhile, the bank’s cash crisis has arisen due to customers withdrawing money from the bank.

According to the report of the central bank, compared to October 2019, the trend of withdrawing money from the bank and keeping it in the hands of customers increased by 21.29 percent.

From October 2020 to October 2021, the growth rate of this trend dropped to 8.74 percent. From November 2021 to last November, the tendency to withdraw and keep money increased by 20.19 percent. Last October, when various rumors spread about the banking sector, the tendency of customers to withdraw money increased.

Due to this Russia Ukraine war, the prices of almost all types of goods increased in the international market. It also has a negative impact on the country’s market. Product prices rise. Depreciation of the Tk against the dollar results in a fall in the value of the Tk. It reduces people’s purchasing power. It is feared that the overall economic condition of the country will also worsen due to the impact of the war and food crisis may also occur.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here