BB in a quagmire as excess liquidity balloons Funds soar 95pc year-on-year to Tk 204,700cr in Dec last year Bangladesh Bank has fallen in a quagmire tackling an escalation of excess liquidity trending in banks, emerging from slow credit growth and implementation of stimulus packages and an upward trend in receiving remittance. Excess liquidity in the banking sector escalated 95 per cent year-on-year to Tk 204,700 crore in December last year, which have largely been invested in treasury bills and bonds, showed data from the central bank. There is no scope to mop up liquidity from banks at this moment as the excess fund has not had any impact on inflation because of suppressed demand among consumers and investors due to the economic hardship brought on by the coronavirus pandemic.