The number of bank accounts holding deposits exceeding Tk 1 crore has continued to grow, despite the ongoing economic crisis and inflationary pressure in the country.
According to Bangladesh Bank (BB) data, the number of such bank accounts increased by 3,322 to reach 1,16,908 at the end of December 2023, up from 1,13,586 in September and 1,09,946 in December 2022.
Deposits in the accounts of individual customers increased to Tk 9.54 lakh crore in December from Tk 9.44 lakh crore in September.
They included deposits in individual businessmens accounts, which also rose to Tk 2.14 lakh crore in December from Tk 2.02 lakh crore in September.
However, despite the growth in high-value accounts, the majority of bank accounts in Bangladesh hold relatively small amounts. Out of a total of 15.35 crore bank accounts nationwide, 11.16 crore accounts hold less than Tk 5,000 each, as per central bank data.
The accounts holding more than Tk 1 crore represent only 0.075 per cent of the total bank accounts, yet they account for 42.4 per cent of aggregate deposits.
The total deposits in the banking sector stood at Tk 17.49 lakh crore at the end of December. It included Tk 7.41 lakh crore in accounts holding more than Tk 1 crore.
Among the accounts with over Tk 1 crore deposits, 1,812 accounts hold deposits over Tk 50 crore each, collectively holding more than Tk 2.53 lakh crore. The volume of money in accounts holding Tk 1 crore each was Tk 7.3 lakh crore at the end of June 2023, and Tk 6.77 lakh crore at the end of December 2022.
This growth in high-value accounts has been consistent over the past five years, with the number of accounts each holding over Tk 1 crore increasing from 75,563 in December 2018 to 1,01,976 by the end of December 2021.
Bankers said the countrys economic challenges, including soaring inflation, mounting external debts, dollar crisis, falling foreign reserves, and energy shortages have left limited investment opportunities for affluent individuals, leading to a rise in deposits in their bank accounts.
Furthermore, the governments high borrowing from the central bank, which involves printing money, has also increased money flow in the financial market.
Additionally, the governments decision to issue bonds to repay its borrowing of Tk 42,000 crore has further increased money flow and raised deposits in accounts.
In the past financial year 2022-23, the governments borrowing from the countrys banking sector amounted to Tk 1.24 lakh crore, with Tk 98,826 crore borrowed from the central bank and Tk 25,296 crore from the commercial banks.
Zahid Hussain, a former lead economist of World Banks Dhaka office, explained to that the number of accounts holding more than Tk 1 crore had been increasing due to persistently high inflation.
He highlighted that as the general public buys products at higher prices, profits often end up in the accounts of businesspeople.
Hussain recommended focusing on job creation and creating a more business-friendly environment for small and medium enterprises, which could help reduce the disparity between the rich and the poor.
