Deposit protection act changing

Bangladesh Bank is considering further changes to the Bank and Financial Institution Deposit Protection (Amendment) Act-2023.

The financial sector regulator believes that the level of protection of depositors will be increased through this change, said central bank sources on Wednesday (October 30).

According to sources, if the deposit protection act is finalised, 95 percent of the depositors of the banking sector will be protected.

Bangladesh Bank Governor Ahsan H Mansur believes that if the law is changed, 100% investors will be protected.

Central bank officials said, “We are working on behalf of the depositors. That is why we are trying to reform the banks. The board (of banks) has been constituted with people who understand the banking sector.”

Liquidity facility is being provided to banks to refund depositors’ money on demand. Bangladesh Bank also said that arrangements have been made to borrow through other banks without printing new money.

Bangladesh Bank believes that depositors' money is completely safe.