Dhaka, Aug. 16 -- Excess liquidity in Bangladesh's banking sector reached an all-time high, crossing Tk 4.08 lakh crore at the end of June 2026, driven by rising bank deposits and a distinct reluctance among entrepreneurs to take new loans for business expansion or establishing industrial plants.

Central bank data shows that deposit growth in the banking sector stood at 10.74 percent in June, whereas credit growth to the private sector slowed to 4.47 percent during the same period.

The widening gap between deposit accumulation and credit disbursement has caused idle money in banks to more than double over the past two years-rising from Tk 1.93 lakh crore two years ago and Tk 2.83 lakh crore in June last year to over Tk 4.08 lakh crore i...