People keeping cash outside banks despite promise of high returns

In Bangladesh, despite banks offering significantly higher interest rates than two years ago, people are increasingly keeping their money outside the banking system. This trend, attributed to fears of bank crises and high inflation, has led to a liquidity crunch for banks. To counter this, banks are aggressively competing for deposits, offering interest rates of 10% to 11% and promising to double deposits within five to six years. However, despite the increase in money outside banks, the deposit growth rate has risen, indicating that withdrawn funds are being redeposited elsewhere.