Companies and well-off households are parking funds at banks in the form of deposits despite no return in real terms primarily because of lower investment and consumption caused by the pandemic-induced uncertainties.
Total deposits in the banking sector stood at Tk 13,45,436 crore as of September, up 12.40 per cent year-on-year.
But the question is whether depositors would get any positive return on their deposits with banks at the moment. The answer is no.
Bankers and analysts say the real interest rate now hovers around the negative territory given the higher inflation rate.
The situation may not change anytime soon, so there is little possibility for the deposit rate to go up in the next two to three years, they warn.
Forex reserves surge past $42b Star Business Report Star Business Report
Foreign exchange reserves yesterday hit a new record of $42.09 billion thanks to the upward trend of remittance and lower import payments, Bangladesh Bank data showed.
The reserves, one of the major macroeconomic indicators of an economy, touched the $40-billion mark on October 8 and rose to $41 billion on October 28.
The reserves stood at $32.11 billion on December 15 last year.
There is no scope to be complacent due to the ballooning of the reserve as the collapse in demand and investment have hurt imports in recent months, experts said.
Remittance has been on the rise riding on the stagnation of the global hundi cartel, an illegal cross-border financial transaction. The hundi cartel has been rendered ineffective across the globe due to the restrictions on movement imposed by countries to limit the spread of the coronavirus.