Cash outside banks shoots up amid loan scams, inflation

A file photo shows a man counting taka notes in the capital Dhaka. — New Age photo

The amount of cash outside the country’s banks soared to record Tk 2,52,982 crore in November as people rushed to withdraw their deposits and held cash in their hands amid media reports on loan anomalies in the banking sector and inflationary pressure.

According to Bangladesh Bank data, the amount of cash outside banks advanced by Tk 16,868 crore in November from Tk 2.36 lakh crore in October.

Economists said that clients’ worries over the health of the county’s banking sector and high inflation prompted them to withdraw their funds from banks.

Various rumours about the sector’s situation added fuel to the fire, they said.

The media has recently reported incidences of loan anomalies involving huge amounts of money in Shariah-based banks.

Three Shariah-based banks — Islami Bank Bangladesh, Social Islami Bank and First Security Islami Bank — allegedly sanctioned huge amounts of loans to some shell companies without proper collateral and documents, the media reported.

The anomalies in the Shariah-based banks have exposed more wounds in the already scam-hit banking sector.

Due to the loan irregularities, depositors, worried about their money, had…