Till May last year, the banks distributed loans worth Tk 11.38 trillion; of this, the loan to the private sector was Tk 10.01 trillion. The default loan stands at around Tk 1.5 trillion. In addition, loan from government banks is Tk 1.13 trillion while the deposit at banks till April was Tk 10.26 trillion.
Bangladesh Bank information says that at this moment, the country has paper notes worth Tk 2.45 trillion. Of this, 90 percent are 500 and 1000 Taka notes while the rest are of lower denominations.
According to Bangladesh Bank, this is reserve money and the supply of it is used to control inflation. Specialists contend that banks are handing out loans from the reserve of Tk 2.45 trillion. This money is also used for gold trade, running business and paying government officials their salary and bonuses.
Bangladesh Bank records state that till May last, Taka worth 2.46 trillion was floated in the market. Former executive director of central bank Mahfuzur Rahman, said: “Tk 10 trillion could be handed out as loan from this money; if someone deposits Tk 100 in the bank then the bank keeps Tk 10 and gives Tk 90 as loan to someone else; the other person is also keeping the money in the bank while that bank follows the same formula.”
Bangladesh Bank divides money into two categories: Narrow money and Broad money, and till last May, Broad Money has been Tk 120.52 trillion.
Meanwhile, currency is the money in circulation, which is in the hands of the people used for regular transaction. The paper notes deposited in banks are paper currency while notes and metal coins between Tk 1 and 5 are called government currency.