Li

qui
dit
ycr
isi
s:r
easonsandwayst
oover
come

Aft
erhavi
ngexcessli
qui
dit
yforquit
ealongti
me,bankshavebeenfaci
ngi
ncr
easi
ngl
ymor
e
demandforl
oansfrom t
hepri
vatesect
orsi
nceDecemberlastyear
.

Inthissit
uati
on,af
ewbankshaveexceededtheall
owableloan-deposi
trat
io(LDR)of85
percent.Asiti
saviolat
ionofoneofthemacr
o-pr
udent
ialpoli
cies,t
heBangladeshBank(BB)
tookactionagai
nstthesebanks.TheBBhasadvi
sedbankstor educetheLDRt o83.
5percent
byDecember2018.

Itwil
lcompelbankstor et
ainandcol l
ectahigheramountofdeposi tt
omai nt
aint
heircur
rent
l
evelofloansandadvancesori ncreasether
eof .Apparentl
y,itwi
llaugmentthecurr
ent
l
iquidi
tycri
sisofbanks.Asar esul
t,somebanksandf i
nanciali
nsti
tuti
onsarenowtryi
ngto
coll
ectmoref undsbyapplyi
ngt r
aditi
onalst
rategyi.e.i
ncreasingtherateofi
nter
est.

Isthi
sshort
ageofliqui
dit
yinbanksunexpected?ImaynotbewrongifIsayt
hatiti
sexpected.
Acountrywher
egr owthratei
s7.28percentneedsswel
li
ngamountofmoneyt oful
fi
lthe
necessi
ti
esofagiganti
cnumberoftransacti
onsattheconsumer
,tr
aderandproducerlevel
s.

Forexample,capi
talgoodsthatr
ecor
dedahighgrowthrat
eof11.2percentto$20.119bil
li
on
i
n2017f rom $18.
092bi l
li
onin2016arecl
ear
lyi
ndicat
inganupcomingbulli
shtrendofthe
pri
vatesect
or.

Addi
ti
onal
ly,
ifpubl
ici
nvest
mentincr
easesinf
utur
eatthecurr
entr
ate,
gover
nmentbor
rowi
ng
fr
om t
hebankingsect
ormayincr
ease.Thi
swil
lfur
therf
uelt
hecurr
entli
qui
dit
ycr
isi
s.

Apartfrom t
his,
duri
ngthelastt
woyears,
househol
dsavershavepar
kedthei
rmaxi
mum
possibl
esavingsinsavi
ngsschemesinst
eadofbanksasthebankswerepayi
ngalower
i
nterestrat
eondepositsandsomet
imesevenlessthant
heinfl
ati
onrat
e.

Addi
ti
onal
ly,
spi r
all
ingnon- per
formingl
oans,i
ncreasi
ngblackmoney,tr
appi
ngmoneyi nthe
shar
emarket,andsi phoni
ngmoneyout sideofthecount
rymi ghtbet
hepossi
blecauses
behi
ndthecurrentl
iquidit
ycr i
sis.

Inthi
ssit
uation,st
rat
egies,l
ikegivi
ngastrongdri
vet
ocol
lecti
dlemoneyfrom saver
sand
bri
ngearningsofthenon-residentBangl
adeshi
(NRBs)wi
thfi
nanci
alandnon-fi
nanci
al
benefi
ts,
andst oppi
ngloophol esofsi
phoni
ngmoneycanimprovethescenar
io.

Agoodchunkofmoneyownedbygar mentworkersisnotusual
lycomingtothebanki
ng
sector.Al
thoughi
tisti
nyatthei
ndividuall
evel
,itmaybehugeal toget
her
.Bankscanforma
tai
loredone-t
imeorrecur
ri
ngdepositproductbyofferi
ngfi
nanci
alandnon-fi
nanci
albenef
it
s
tothissecti
onoft
hesociety.
Incaseoffi
nancialbenefi
ts,banksmayconsi
derarat
ionalamountofi
nter
est
,ext
endsecur
ed
overdr
aftf
acil
it
yandgi veflexi
blet
imei
ndeposit
ingmoney.

Non-f
inanci
albenefi
tscanbeawar di
ngapri
zetoki
dsofgarmentdeposi
torsforacademicand
ext
racurri
cul
um achievements,makingavai
labl
emedi
calt
reat
mentatadi scountedrat
eand
off
eri
ngeasycollect
ionprocedures.

Addinginsurancefacil
it
ywithdeposi tschemewil
lenhancethesenseoff
inancialsecur
it
yto
suchsavers.Forexampl e,
thenomi neeoft hewor
kersofRanaPlazacoul
dhavegotsome
fi
nancialbenefi
ts,hadthedeceasedwor ker
sgott
hescopetoopenadeposi taccountwit
h
i
nsurancef aci
li
ty.Thesenon-f
inancialbenefit
smaycreat
einter
estamongdeposi t
orstoput
moneyi nbanks.

Almost9. 05mi l
li
onBangl adeshinat
ional
sworkingabr oadar
epl ayi
nganessent i
alr ol
einour
economy.I n2017,theysent$12.59bil
li
onwhichhasst r
engt
henedourcur rentaccount
balance.Wecani ncreasethisamountmanifol
dt hr
oughdesigningappr opr
iatepr oducts.
Alt
houghwehaveWageEar nerDevel
opmentBonds, thesear
enotwel lf
amiliartotheNRBs.
Commer cialbankscandesi gnafewdepositproductsbyunderstandingtheirrequirements.

Bankscancreat
eadeposi tproductaki
ntoapensi
onschemeandcanalsoforminvestment-
l
inkeddeposi
tproductsbypledgingtoi
nvestt
hedeposi
tedamountofNRBsinrealandfi
xed-
i
ncomebear i
ngassets.

Manybanksdonothavesui t
abledepositproduct
sthattakei
ntoaccounttherequi
rementsof
agedpersons.Adeposi
tproductwit
hmedi calser
vices,i
nsur
ancefacil
it
y,ascopeforpr
iori
ty
servi
ceandassist
anceinsubmitt
ingthetaxretur
ntot heNat
ionalBoar
dofRevenuemay
att
ractmanyagedpersonstokeeptheiri
dlemoneyi nbanks.

Anotheri
mport
antsour
cecoul
dbethewomenpopulat
ionasmostoft
hem ar
ehousewives.
Theyholdahugeamountofi
dlemoneyi
nthei
rhouseastheyar
enotmost
lybankabl
e.

Bankscancomef orwardtobr
ingthi
smoneybydesigningappropr
iat
esavingspr oducts.I
n
desi
gningproduct
sforthi
ssecti
onofthesoci
ety,
saf
ety,conf
ormabil
it
y,f
lexibi
li
ty,objecti
vit
y,
andloanfaci
li
tyar
er equi
redt
obecontemplat
ed.

Apartfrom these,bankscani
ntroducedepositproductsfordif
ferenttypesofmar ginalpeopl
e
byofferingfinanci
alandnon–fi
nancialbenef
its.Alargeamountofmoneyi sbeingheldby
rel
igi
ousor ganisati
onsli
kemosque, t
emples,andchur chesintheirownpossessi on.This
moneymayal sobeachanneltobanksifappropriat
epr oduct
scanbest ructur
edconsi der
ing
therel
igioussent i
ment.

Wearesti
ll
habi
tuatedtousi
ngthepr
intedmoney.Asar esul
t,eachper
sonishol
dingmoney
i
nthei
rwall
etwhichcanbemassivei
nt ot
al.Theusageofplasti
cmoneycanreducethe
amountofmoneyinthewall
etandi
ncreasethevolumeofmoneyi nthebanki
ngsector
.
However ,
reachingouttheappropr
iat
esegmentoft hesoci
etyisakeychal
lenge.Convenient
branches,agentbanking,
mobi l
ebanking,i
nter
netbanki
ng,andstr
ongwebsiteswit
h
appropri
atemar ket
ingandsalesacti
viti
escanbeusedtoreachnewhousehol dst
ocollect
coredeposits.

Ofcour se,cust
omerconfi
denceinbanksandfi
nanciali
nsti
tut
ionsal
ongwi t
hrel
ationshi
p
packaget hatprovi
desbet
terrat
es,
fewernui
sancefees,andahigherl
evelofser
vicealso
mat t
ers.Sourci
ngfundsbyissui
ngbondsisacommonphenomenoni nbanksindiffer
ent
countri
es.Bankscanopenanewwi ngtosour
cefundsthroughissui
ngbonds,whichwi l
lcut
rel
ianceondeposi t
s.

Iti
sbeli
evedt hatcol
lect
iveandprudentini
ti
ati
veswil
lhel
pbanksandfi
nanci
ali
nsti
tut
ions
bri
ngunutil
isedmoneyi ntothef
inancial
sector,
suppl
yingmuch-
neededl
ubri
cant
stoour
economy.