Dhaka, Dec. 5 -- The currency held outside banks has been flowing back into vaults in greater volumes in recent months, providing some sort of respite to commercial lenders amid persisting liquidity tightness.

Deposits amounting to Tk 260 billion that flowed out returned to the banking sector in the last four months till October, official data shows.

Central bankers and money market analysts say clients withdrew a large volume of their deposits from the banking system due to trust deficit in the wake of media reports on the merger of several commercial lenders.

The volume of mattress money (cash kept outside banks) rose to a record high in June 2025.

But comparatively higher deposit rates amid a lax investment regime under the prevail...