Banks turn to bonds amid uncertainty
Bangladesh is facing a worrying decline in private sector investment, exacerbated by prolonged political instability. The country’s banking sector has witnessed a surge in excess liquid assets, reaching Tk2.15 lakh crore at the end of December 2024, compared to Tk1.63 lakh crore a year earlier. According to a report (https://bdreports24.com/private-investment-dips-multi-year-low) published in this news portal on Friday, this stark increase, largely driven by reduced private sector borrowing, signals a deep-rooted economic uncertainty that could have long-term ramifications.
Private investment dips multi-year low
The political instability over the past year has significantly reduced private sector investment in Bangladesh, leading to a year-on-year increase of Tk51,696 crore in banks’ excess liquid assets.
According to data from Bangladesh Bank, the total excess liquid assets in the banking sector—including securities—stood at Tk2.15 lakh crore at the end of December 2024, compared to Tk1.63 lakh crore a year earlier.
While excess liquid assets rose, excess cash holdings in banks declined by Tk2,291 crore, standing at Tk17,675 crore at the ...
While excess liquid assets rose, excess cash holdings in banks declined by Tk2,291 crore, standing at Tk17,675 crore at the ...
