Dhaka, June 2 -- Stability in Bangladesh's troubled banking sector will depend on restoring depositor confidence, Finance Minister Amir Khosru Mahmud Chowdhury has said.

Speaking at the Economic Reporters Forum (ERF) office in Paltan on Tuesday, he said efforts were under way to inject fresh capital into banks as part of a broader plan to stabilise the sector.

"The instability will ease when banks are adequately capitalised, when depositors can get their money back, regain confidence, and begin depositing again. Once banks can resume lending, the cycle can start functioning normally," he said.

The finance minister also described the tailoring of the new budget as a major challenge, saying the BNP government had only around six weeks to...