Following Sheikh Hasina's removal from office on August 5 during a student-led uprising, widespread corruption and embezzlement in the banking sector during her nearly 16-year tenure have come to light.
The rapid increase in millionaires under the Awami League regime has reversed sharply. According to Bangladesh Bank, approximately 1,657 millionaire accounts, each with a minimum balance of Tk1 crore, have disappeared in the last three months following the previous government's downfall.
Experts attribute the decline to multiple factors. The soaring cost of living has left the lower and middle classes struggling to make ends meet, forcing many to withdraw their savings. Meanwhile, the interim government has begun investigating accounts linked to corruption, including those of former MPs, ministers, and influential figures. Many of these accounts have been frozen or summoned, prompting wealthy depositors to withdraw their funds out of fear.
As a result, both individual and corporate high-value accounts have decreased significantly.
Bangladesh Bank’s latest data reveals that as of September 2024, the total number of deposit accounts in the banking sector reached 16.20 crore, with a total deposit of Tk18.25 lakh crore. However, this marks a decrease from Tk18.38 lakh crore in June, despite an increase in the number of accounts during the same period.
Specifically, accounts holding more than Tk1 crore have dropped to 1,17,127, with total deposits amounting to Tk7.46 lakh crore, representing 41% of total bank deposits. This is a decline from June, when there were 1,18,784 such accounts with deposits of Tk7.73 lakh crore.
The phenomenon of millionaire accounts has grown over the decades. According to the Bangladesh Bureau of Statistics (BBS), there were only five millionaire accounts in 1972. By 1975, the number rose to 47, reaching 943 by 1990, 8,887 by 2006, and 19,163 by 2008. This figure surged to 93,890 by December 2020 and further increased to 1,16,908 by December 2023. However, by September 2024, the number fell to 1,17,127, highlighting a reversal in the trend.
Officials from Bangladesh Bank note that millionaire accounts include both individual and institutional depositors, with some holding multiple accounts. Government entities also contribute to this category.
The drop in millionaire accounts and total deposits underscores deeper concerns about economic stability, public trust in banks, and the lingering impacts of long-term corruption in the banking sector. The interim government and central bank are now tasked with restoring confidence and addressing these systemic issues.
BDST: 1214 HRS, DEC 11, 2024
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