The number of bank accounts holding deposits exceeding Tk 1 crore increased by near 5,000 in December due to stagnant business environment in the country.
According to the Bangladesh Bank data, the number of such accounts rose by 4,954 in the December-end quarter, reaching 1,22,081 from 1,17,127 in September.
Earlier in June 2024, the count stood at 1,18,784 and in March same year 1,15,890.
Following the political changeover in August, depositors withdrew funds due to concerns over governance, financial stability and revelations of corruption in the banking sector.
The restructuring of several bank boards further fueled apprehension, leading to a decline in high-value accounts in September 2024.
However, as business activities gradually improved from October, depositors started returning their funds to banks.
Economic conditions have also played a role in this trend. High inflation, a volatile foreign exchange market and limited investment opportunities have led affluent individuals to put their money in banks rather than exploring alternative investments.
The reduction of money laundering has further contributed to the increase in聽 deposits, as stricter regulations have curbed capital flight.
The central bank鈥檚 liquidity support also influenced deposit growth. The Bangladesh Bank injected over Tk 30,000 crore into six crisis-hit banks through money printing, adding liquidity to the system and indirectly contributing to deposit accumulation.
Despite the rise in high-value accounts, the majority of bank accounts in Bangladesh hold relatively small amounts.
Out of the total 16.32 crore bank accounts nationwide, 11.81 crore contain deposits of less than Tk 5,000 each.
In contrast, accounts holding over Tk 1 crore represent only 0.075 per cent of the total but account for approximately 41 per cent of the aggregate deposits.
At the end of December, total deposits in the banking sector stood at Tk 18.83 lakh crore.
Of this, Tk 7.74 lakh crore was held in accounts containing more than Tk 1 crore.
Among these, 1,907 accounts each contained deposits exceeding Tk 50 crore, collectively holding over Tk 2.60 lakh crore.
The continued rise in high-value accounts over the years reflects growing financial concentration.
From December 2018 to December 2021, the number of accounts exceeding Tk 1 crore increased from 75,563 to 1,01,976, a trend that has persisted despite economic fluctuations.
Experts suggest that persistently high inflation has contributed to the increase in such accounts. According to Bangladesh Bureau of Statistics data, inflation had remained high鈥攁bove 9 per cent鈥攕ince March 2023 and was 9.32 per cent in February, driven by rising costs of essential commodities.
Some businesses have profited from inflationary pressures, accumulating higher revenues and parking their excess funds in banks.
While the rise in deposits may indicate a degree of financial stability, it also highlights growing inequality, as a small fraction of account holders controls a significant share of the banking sector鈥檚 wealth, while most accounts hold minimal funds.