Depositors’ money is secured in banks and they will get their money back even if any bank faces liquidation, said Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque.
In a conversation with The Business Post, Mezbaul Haque advised depositors to be more conscious about the financial sector before investing their funds.
There is no reason that depositors would not get back their deposited money from the banks, he said, adding that if any bank faces liquidation, the central bank takes initiative to repay the depositors’ funds.
“In this case, we find two types of depositors; depositors with one lakh taka and depositors with above one lakh taka. In case of depositors with one lakh taka, the money is paid back immediately after the liquidation from the deposit insurance fund. And in case of depositors with above one lakh taka, the money is paid back by selling the concerned bank’s asset,” the BB spokesperson said.
Mentioning the recent trend of confidence crisis among depositors, Hauque said that the country’s banking sector is facing some challenges mainly due to the global economic crisis created by the ongoing Russia-Ukraine war.
He said that since the beginning of the war, the price of oil and gas has increased which put pressure on the country’s foreign exchange market.
“Those issues created extra pressure on our economy and amid this period some evil persons spread misinformation about our banking sector. As a result, some clients became confused and withdrew their funds but finally they returned to the bank by restoring their confidence.”
The central bank executive director said that now there is no deposit withdrawal pressure in the country’s banking sector.
He said that the banking regulator withdrew funds from the banking sector by pumping US dollars, which created pressure on banks liquidity. “But now we are injecting liquidity to the banking sector by launching refinance schemes and pre-finance schemes,” he added.
The banking sector is always playing a major role for the development of the country’s economy, Haque said, adding that there is no panic situation in the banking sector at present.
The central bank spokesperson advised the depositors to check the concerned bank’s asset quality; bank management; its earning; and reputation before depositing their funds.
“It would not be wise to deposit their funds only for the sake of profits,” he said.
