Dhaka, Dec 11 (V7N)— The number of bank accounts with balances exceeding Tk 1.0 crore has dropped significantly following the political changeover on August 5, according to Bangladesh Bank's (BB) financial report for the July-September quarter.

The report revealed that over Tk 26,000 crore was withdrawn during this period, impacting more than 1,500 accounts, which fell below the Tk 1.0 crore threshold. Economists have attributed the withdrawals to panic among depositors, particularly in weaker banks, prompting many to transfer their funds to stronger financial institutions.

The report highlights a steady growth in Tk 1.0 crore accounts over the decades. In 1975, there were only 47 such accounts. By 2015, this number had risen to 57,516, and at the onset of the Covid-19 pandemic in March 2020, it stood at 82,625. By mid-2024, the figure had climbed to approximately 117,000 accounts.

Despite the historical growth, recent trends show a reversal. The political instability has led to significant withdrawals, with weaker banks struggling to accommodate large disbursements. This, in turn, caused a consolidation of funds into stronger banks, where single accounts often exceeded Tk 1.0 crore.

Economists believe the decrease in millionaire accounts could be temporary and reflective of a lack of confidence in weaker banks. They caution that the trend might also indicate underlying economic vulnerabilities, despite the overall growth in such accounts post-pandemic.

As the situation stabilises, financial experts suggest that the banking system may see a rebound in Tk 1.0 crore accounts, provided public confidence in the sector is restored.

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