No one will keep money in banks if savings certificate profit rises, says Advisor Salehuddin

He says Islami Bank reflects growing public trust as the central bank works to stabilise weak lenders

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 depositor protection, and the interim government is “committed” to returning funds in all cases.

Salehuddin also said delays were possible in recovery efforts, as significant sums had already been misappropriated -- something he claimed had not happened elsewhere in the world.

He added that discussions were ongoing with the National Board of Revenue (NBR) to resolve current instability, and a five-strong taskforce had been formed to implement the steps.