Number of Tk 1 crore and above account holders drops after political changeover: BB report

According to BB financial report for the Jul-Sep quarter, over Tk 26,000 crore was withdrawn by people.

The number of Tk 1.0 crore and above account holders in the banking system has decreased following the political changeover on August 5.

According to Bangladesh Bank’s (BB) financial report for the July-September quarter, over Tk 26,000 crore was withdrawn by people, all of whom are millionaires holding accounts with over Tk 1.0 crore.

Due to these withdrawals, the bank account balances of more than 1,500 people also dropped below the Tk 1.0 crore threshold.

While the exact number of real millionaires in the country remains uncertain, an approximate estimate can be derived from the number of crore-taka accounts in banks.

These accounts have seen a significant increase since the Covid-19 pandemic, the report says.

Bangladesh Bank statistics reveal that in 1975, there were only 47 accounts holding over Tk 1.0 crore.

By 2015, this figure had risen to 57,516. At the start of the Covid-19 pandemic in March 2020, the number of such accounts stood at 82,625, increasing to 117,000 as of now.

Economists attribute the recent withdrawals to panic among small depositors following the political changeover.

They suggest that weaker banks struggled to disburse large sums to millionaires, forcing many to transfer their funds to stronger banks.

Consequently, funds consolidated in single accounts in stronger banks may exceed the Tk 1.0 crore mark.

Based on these trends, the number of Tk 1.0 crore and above accounts was expected to rise.

But, contrary to expectations, the figure has decreased.