Dhaka, Oct. 5 -- Following a severe liquidity crunch throughout 2024, Bangladesh's banking sector is now witnessing the opposite scenario - a surge in idle liquidity. Instead of signaling financial strength, the rise highlights a deeper malaise in the economy, where declining private investment and sluggish credit demand are leaving banks awash with idle cash.However, the broader economic picture remains bleak. Political uncertainty, recurring social unrest, and an escalating energy crisis have combined to create a climate where investors are unwilling to take risks.
With the worsening shortages of gas and electricity and no short- or medium-term strategies in place to secure energy supply, the sharp decline of confidence in the economy is...