Metropolis Desk-
Despite the biggest inflation in a decade, bank deposits increased by 8.81 percent in May, which was the highest growth rate in the previous 11 months.
Due to deposit withdrawals, banks had a liquidity crisis, although they were able to borrow money overnight through repo from the central bank.
In May, deposit growth picked up and reached its peak. Because of improved governance and digital services, the central bank said that loan growth fell to 11.72 percent in May but that deposits rose faster than loans.
From 4.38 percent in April to 4.41 percent in May, the interest rate on bank deposits climbed.
The amount of money held by the general public fell by Tk7,500 crore, but this rise in liquidity flow and expansion of deposits and loans is good for the economy.
Although good banks are receiving more deposits, they are not significantly raising their deposit interest rates, therefore deposits are not growing equally in all banks.
