Will banking system in Bangladesh collapse?

[AicecreaME]

Due to pandemic, there’s lockdown going on here. People are more likely to withdraw fund from Bank while rate of deposit is decreasing now. On a side note, default loan has been alarming here.
I was looking for cash out BDT from mobile banking but I had to look for a long area to find out a mobile banking agent. I felt like I should cash out more money than I need for now because it’s possible that there will be no agent opening their shop.
The same will also happen with the banking system if situation get severe which possibly will be soon. And if the lockdown continues for months, won't bank have hard time maintaining deposit and withdraw?
What do you think? Is it possible that if lockdown continues, banking system will collapse here?

Lockdowns really made the people go panic buying, withdrawing, and loaning. It is really hard to be in a city wheareas the time to go outside and do what you have to do is very limited. Hence, most people just opt to buy in bulk and withdraw at once. The majority who has the means of withdrawing their hard-earned money are doing it because it's really hard to go outside every time. It is also difficult to risk your health everytime you'll run some errands.

Regarding bank issues, I think the greater percentage of money borrowed by the citizens than the deposited money in a bank will cause a problem. If the banks will not impose a collateral for every loans made by its users, they will surely have a large problem later on. Imbalance of funds may occur if continuous loans and withdrawal will be made. Soon after, they won't be able to sustain the demands because they will be short of funds. Bank collapse can possibly happen if the transactions were not regularized properly. There's also a big chance that the government's debt will surge due to volume of aid needed to be distributed. I just really hope that Bangladesh's governement will not look on excessive printing of money because it can cause a lot more problem such as inflation, which can damage their economy even more.

[Imran232]

Collapsing with is not a new thing to the world. But its a time taking process. But if we talk about Bangladesh its not will be easy or though its a government work in every country its takes time. And for Bangladesh i think it will take much more time like firstly they creat a team to research about it then they send a proposal to finance Department then they will research about it then they talk about it in Sangsad after that if Sangsad approved it then will talk with Bangladesh bank then if they approved then need it chcek. And for all this i think it might take a huge time. Its my opinion thank you

[yhiaali3]

It is certain that if the closure continues, the banking system will collapse there, they will lose people's confidence and therefore there will be no withdrawal and deposit, which can cause the collapse, or the bank will be forced as usual to print more paper money to cover the budget deficit and this will of course lead to more inflation And the Bangladeshi paper money loses more of its value. Unfortunately, I hear a lot about government corruption in Bangladesh and the bad economic conditions and the collapse of the banking system will lead to a further deterioration of the country's economic situation.
Unfortunately, the world's governments do not yet realize that this banking system that has been in existence for years is on its way to collapse. Satoshi announced the end of the corrupt banking system when he announced the birth of Bitcoin and hammered the last nail in the coffin of the corrupt central banking system, but until now they cannot understand this fact.

[Coroline]

Due to pandemic, there’s lockdown going on here. People are more likely to withdraw fund from Bank while rate of deposit is decreasing now. On a side note, default loan has been alarming here.
I was looking for cash out BDT from mobile banking but I had to look for a long area to find out a mobile banking agent. I felt like I should cash out more money than I need for now because it’s possible that there will be no agent opening their shop.
The same will also happen with the banking system if situation get severe which possibly will be soon. And if the lockdown continues for months, won't bank have hard time maintaining deposit and withdraw?
What do you think? Is it possible that if lockdown continues, banking system will collapse here?

Lockdowns really made the people go panic buying, withdrawing, and loaning. It is really hard to be in a city wheareas the time to go outside and do what you have to do is very limited. Hence, most people just opt to buy in bulk and withdraw at once. The majority who has the means of withdrawing their hard-earned money are doing it because it's really hard to go outside every time. It is also difficult to risk your health everytime you'll run some errands.

Regarding bank issues, I think the greater percentage of money borrowed by the citizens than the deposited money in a bank will cause a problem. If the banks will not impose a collateral for every loans made by its users, they will surely have a large problem later on. Imbalance of funds may occur if continuous loans and withdrawal will be made. Soon after, they won't be able to sustain the demands because they will be short of funds. Bank collapse can possibly happen if the transactions were not regularized properly. There's also a big chance that the government's debt will surge due to volume of aid needed to be distributed. I just really hope that Bangladesh's governement will not look on excessive printing of money because it can cause a lot more problem such as inflation, which can damage their economy even more.

In fact, money from customers is one of the largest sources of bank income and is used to rotate its services. When the bank's cash reserves are no longer sufficient to serve customers who withdraw their funds, the bank must sell its assets. If it still doesn't cover the existing needs, then the bank will also fail to pay.

If this happens, the government will be forced to share the consequences of the rush of money that occurs by channeling aid funds from bonds. Worse, the impact of this money rush can cause an economic recession that will make it difficult for the wider community.

[Nunoluck]

I hope the citizens of Bangladesh don't withdraw all their money that can cause inflation. I think it is okay if the money is used for produce their domestic product. If they only use the money for consumption only then I think it is a bad idea. I think there is no problem with banking system but in my opinion the dangerous thing is the inflation effect to the economy of their country.

[jrrsparkles]

Due to pandemic, there’s lockdown going on here. People are more likely to withdraw fund from Bank while rate of deposit is decreasing now. On a side note, default loan has been alarming here.
I was looking for cash out BDT from mobile banking but I had to look for a long area to find out a mobile banking agent. I felt like I should cash out more money than I need for now because it’s possible that there will be no agent opening their shop.
The same will also happen with the banking system if situation get severe which possibly will be soon. And if the lockdown continues for months, won't bank have hard time maintaining deposit and withdraw?
What do you think? Is it possible that if lockdown continues, banking system will collapse here?

Don't worry, Bangladesh Central bank will print money and will liquidate it into the economy via banks in different forms so the banks are not going to collapse but the inflation rate will be out of control so the actual purchasing power will be lost so don't keep anything in the fiat form, just convert into some assets like Gold which can be converted back into fiat later.

[Lorence.xD]

Not everyone can withdraw from banks within a day because that's how it will collapse, banks don't have money in them that's enough to accommodate everyone that will withdraw money in their branches, they are working base on fractional reserve banking. Plus they won't collapse that easy because they can just close the banks for the day if the number of withdrawal is going to be that big.

[paxmao]

I have many times talked about how a large part of the population are "unbanked", that is, for reasons of poverty, ability or lack of access to any commercial banking facility, even in terms of distrust they cannot or will not open a bank account, thus not having any access to electronic payments in fiat, credit or payments that most people here would consider as usual business. If you think of it, it seems ironic that this status in society will also assure them that they will not lose anything if a bank collapses. Is not really much of a consolation because the fallout will be strong anyway.

https://thefinancialexpress.com.bd/trade/half-of-bangladesh-adults-remain-unbanked-wb-1524886500

[Xinarae*]

It is true that the banks are not in good condition defaulted loans have created big problems there doesn’t seem to be any arrangement going on. It’s been going on year after year significant plans should be made now to reduce bad debts we are all responsible for this situation after the independence of bangladesh there was no entrepreneur to establish a bank in the country. Those who took advantage they were never entrepreneurs they came to loot looted and gone if the government can take the right steps now the banking system in bangladesh will not collapse.

[teosanru]

Due to pandemic, there’s lockdown going on here. People are more likely to withdraw fund from Bank while rate of deposit is decreasing now. On a side note, default loan has been alarming here.
I was looking for cash out BDT from mobile banking but I had to look for a long area to find out a mobile banking agent. I felt like I should cash out more money than I need for now because it’s possible that there will be no agent opening their shop.
The same will also happen with the banking system if situation get severe which possibly will be soon. And if the lockdown continues for months, won't bank have hard time maintaining deposit and withdraw?
What do you think? Is it possible that if lockdown continues, banking system will collapse here?

Government banks generally don't collapse because government is always there to bail them out. They will just increase the fiscal deficit and thereby pumping additional money into the bank. So even if you withdraw everything in cash chances are that you will still feel a lot of heat if any such thing happens. In India too a lot of banks are facing this issue. Infact government did bailed out couple of banks in last one year even one private bank. Moreover Bangladesh's economy has been quite strong from a few years so I think they will be able to handle it nicely.

[Shenzou]

The banking system is constantly operating, with and without covid, there will still be deposits and withdraws, from business that offer services to online shopping and many different systems, so it may be true that things will slow down heavily, but i don't think to the point where the whole banking system would collapse, and if that happens the government wouldn't just sit and watch, there are a lot of solution to the problem if it comes to that point.