Following the fall of the Awami League government in the mass uprising of students and citizens on August 5, billionaires have withdrawn a massive amount of money from the banking sector. As a result, the balance in over 1,500 bank accounts has fallen below BDT 1 crore due to the withdrawal of deposits.
This scenario has been highlighted in a report by the central bank.
In just three months (July-September), billionaires in the banking sector have withdrawn over BDT 26,000 crore. This has led to a severe liquidity crisis in the banking sector, unprecedented in the country’s history.
According to the report, during this three-month period (July-September), individuals who withdrew more than BDT 26,000 crore are all billionaires.
There are varied explanations regarding why and how these wealthy individuals withdrew such significant amounts. Some suggest the withdrawals stem from a lack of trust in the banking sector, while others question why the funds have not been returned to relatively stronger banks.
Bank officials believe that these funds were withdrawn primarily by Awami League leaders, activists, and those close to the party. However, this cannot be proven with documentation as bank account details do not mention political affiliations.
There are rumors that some of these funds were taken out of the country while fleeing to India. Additionally, individuals in hiding across different parts of the country have also withdrawn large sums due to the risk of their accounts being frozen. Many political figures, especially former MPs and ministers, have already had their bank accounts seized.
According to the Bangladesh Bank, the number of bank accounts with a balance exceeding BDT 1 crore decreased by 1,657 during the third quarter of this year (July-September). At the same time, customers withdrew BDT 26,187 crore from these accounts.
Sources revealed that there was significant unrest in the country during the July-September period. Although the weaknesses of several banks under the previous government were significant, these issues were not disclosed. After the new government assumed office, the central bank disclosed these weaknesses, leading to public panic. Consequently, depositors withdrew funds from these banks. Some banks even went bankrupt, and comments by the governor further fueled the panic. However, deposits are reportedly returning to stronger banks.
Data indicates that, as of September 2024, there are 117,127 bank accounts in the country with deposits exceeding BDT 1 crore. These accounts collectively hold BDT 746,867 crore. In the previous quarter (April-June), there were 118,784 such accounts, holding BDT 773,054 crore.
Economists suggest that small depositors withdrew their funds out of fear, while weaker banks struggled to meet the demands of wealthy clients. Many transferred funds from weaker banks to stronger ones, consolidating deposits into single accounts, which could explain the decrease in the number of accounts holding over BDT 1 crore.
It is noted that accounts with BDT 1 crore do not necessarily belong to individuals. Many businesses also maintain such accounts. Hence, “bank accounts with BDT 1 crore” refer to both individuals and institutions. There is no limit on the number of accounts a person or organization can open, meaning one person or entity may have multiple accounts. Among these, many are government institutions with high-value accounts.
The exact number of billionaires in the country is unknown. As such, there is no precise statistic on how many individuals have over BDT 1 crore. However, the number of bank accounts with BDT 1 crore provides a general idea. These accounts have increased rapidly since the COVID-19 pandemic.
Central bank data shows that in 1975, there were only 47 accounts with BDT 1 crore. By 2015, this number had risen to 57,516. At the start of the COVID-19 pandemic in March 2020, it stood at 82,625, which has now reached 117,127.
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