Senior Reporter
Throughout the year, the banking sector was at the center of discussions due to irregularities, non-performing loans, and large-scale embezzlement under various guises. Issues such as the looting, monopolization, and money laundering by the S.
In the first nine months of this year, 347,000 policyholders have canceled their policies with 36 life insurance companies operating in Bangladesh, according to the latest report by the Insurance Development and Regulatory Authority (IDRA). Industry insiders say that while the insurance sector contributes to the economy alongside banks, non-bank financial institutions (NBFIs), and the capital market, it remains plagued by distrust and instability. Despite various governmental and private initiatives, full confidence in this sector has not been restored, and the challenges are deepened by recurring policy cancellations.
Amid the instability in the banking sector following Sheikh Hasina's departure from the country, a substantial amount of money has been withdrawn from banks. Between July and September alone, millionaire investors withdrew over Tk 26,000 crore, according to a report by the Bangladesh Bank.
After the student protests in July, on August 5, Sheikh Hasina left the country, and an interim government was formed under the leadership of Dr. Mohammad Yunus. Since then, there has been severe disruption across various sectors of business, including the garment industry. Garment workers went on strike throughout August and September demanding unpaid wages and other issues, disrupting production activities and negatively impacting exports. While exports increased in July and August, they declined in September. However, garment exports bounced back in October, showing positive growth.
The country's capital market is experiencing a incessant decline. Millions of investors are becoming destitute day by day after losing capital. At the same time, as the investors are constantly losing money in the market, they are suffering from cynicism. As a result, nearly 700,000 beneficial owners or BO account holders have left the capital market in the last five years due to a 'crisis of confidence'. This information has been revealed by the Central Depository Bangladesh Limited (CDBL), an institution that stores shares electronically.
The net profit of 17 banks among the 36 banks listed in the country's capital market has jumped during the third quarter of the year i.e. July-September.