Dhaka, July 5 -- Increasing the profit rate on savings certificates will "discourage" people from keeping money in banks, Finance Advisor Salehuddin Ahmed has said.

Speaking after a meeting at Nabinagar Upazila Parishad in Brahmanbaria on Saturday afternoon, he said such a move could threaten liquidity in the banking system, which must be managed carefully.

He argued that an imbalanced shift towards savings schemes could deprive banks of necessary deposits, making it "difficult" for them to operate.

Discussing reforms, the advisor said Bangladesh Bank is trying to stabilise weaker institutions.

Islami Bank, he added, is showing signs of recovery after earlier setbacks.

He noted that a Bank Resolution Act has been passed to guarantee ...