Bangladesh Sees Significant Growth in Bank Deposits
Bank deposits in Bangladesh surged to 11.10% by December 2025, marking the highest increase in almost four years. This uptick is largely attributed to robust remittance inflows and rising deposit interest rates.
By the end of December 2025, total banking sector deposits exceeded Tk 19.73 billion, compared to Tk 17.76 billion during the same period the previous year, according to data from Bangladesh Bank.
Several bank managing directors noted that this growth is primarily due to heightened remittances, even amidst ongoing challenges like high inflation, increasing unemployment, and sluggish private sector credit growth.
Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, emphasized the crucial role of remittances, stating, “Deposit volumes increased due to increased remittances, despite rising unemployment and stagnant incomes.”
Meanwhile, Bank Asia’s Managing Director Sohail R.K. Hussain mentioned that growing public trust in banks as secure investment options also fueled the growth. He explained, “When remittances are sent through banks, they’re converted into Taka, boosting deposit figures. Plus, deposit interest rates are now better than before.”
Remittance inflows reached $3.22 billion in December 2025, the third-highest monthly inflow ever recorded in the country, a rise from $2.64 billion the previous December. For context, the highest monthly remittance inflow was $3.29 billion in March 2025.
Following a political transition in 2024, remittance flows through formal banking channels began to see a steady rise.
A senior official from Bangladesh Bank pointed out that the central bank will move away from the 9-6 interest rate framework in mid-2024, a change that has already led to increased deposit and lending rates. Previously, depositors received lower returns, but this shift has made bank deposits more appealing.
A finance director at a private commercial bank noted that current deposit interest rates are around 9-9.5%, which exceed the prevailing inflation rate. Concurrently, yields on Treasury bills and government bonds have decreased, leading individuals and entities to prefer bank deposits for their funds.
In September 2021, the deposit growth rate was at 11.26%, but it gradually declined and remained in single digits for 17 consecutive months before hitting double digits again in August 2025.
Decline in Non-Bank Currencies
Data from Bangladesh Bank also revealed a slight drop in currencies outside the banking system. As of December 2025, non-bank currency stood at Tk 2.75 billion, down from Tk 2.76 billion in December 2024.
