Bangladesh Bank
বাংলা      

Deposit insurance is a system established by the Government of Bangladesh to protect scheduled bank’s depositors against the loss of their deposits in the event that a single or multiple banks became unable to meet their obligations. It is a measure to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when payable. DIS is one of the vital components of financial safety net that is meant to promote financial stability.

Importance of DIS:

Deposit Insurance plays a key role in maintenance of financial stability by sustaining public confidence in the banking system through protecting depositors (especially small and less sophisticated depositors) against loss to a significant extent. A sound, competitive banking system is important for nation's economic strength. Scheduled banks play important role in savings accumulation and intermediation of funds from depositors to consumers and investors as well as in the transmission of monetary policy. So, public confidence in banking sectors is very crucial. Deposit Insurance System (DIS) is the key element in maintaining depositor’s confidence and promoting financial stability through accumulating saving in the banking sectors and thus fostering economic growth.