A recent report from the Swiss National Bank uncovered a dramatic and surprising development in Bangladeshi deposits held in Swiss banks. At the end of 2024, Bangladeshis both citizens and businesses held approximately CHF 12.62 million (about $13.8 million) in Swiss bank accounts, a 9.6% decrease from the previous year. This continues a downward trend: deposits fell from CHF 18 million in 2022 and CHF 55 million in 2021, reaching historic lows last year. However, during the first five months of 2025, deposits have rebounded sharply surging to CHF 590 million, an astonishing reversal in just half a year. This surge puts Bangladesh among the top five countries by percentage increase in deposits held in Swiss banking institutions. Experts suggest multiple causes for this exceptional turnaround. One factor may be planned repatriation of funds, where expatriates or investors transferred large sums in a short period. Another driver could be financial diversification, as wealthy individuals and firms look to expand holdings offshore amid geopolitical and domestic uncertainty. This rebound coincides with broader South Asian trends: while countries like India saw modest declines, Bangladesh’s sharp increase stands out globally. Local economists point to several motivations behind the spike: Strategic financial planning ahead of Bangladesh’s LDC graduation. Trust in Swiss banking’s stability and confidentiality. Management of wealth and planning of estates by individuals with significant financial resources. Regulatory experts emphasize that while Swiss banks have relaxed their renowned secrecy, they maintain rigorous compliance with automatic exchange agreements. That means these deposited funds including remittances or private assets are still reported to domestic tax authorities. The Ministry of Finance is expected to monitor the surge closely to confirm its origin and legality. While authorities were informed in 2023 about the plunge in deposits, the rapid spike now has prompted a fresh policy discussion on capital inflow transparency. The story has also sparked debate among civil society groups and anti-corruption watchdogs. Some argue the volume suggests strategic financial planning, while others warn of potential misuse. Echoing previous concerns, Transparency International Bangladesh has called for improved monitoring of high-value deposit patterns and automatic reporting for transactions above a threshold. Despite these concerns, many analysts see the rebound as potentially positive. A legal influx of foreign assets can support foreign reserve growth, enhance global investor confidence, and help manage external debts provided they are transparently integrated into domestic financial systems. In summary, while Bangladesh’s Swiss bank deposits fell to dramatic lows in recent years, the surprising jump to CHF 590 million in 2025 opens a complex but promising dialogue on offshore wealth flows. Transparency, legal compliance, and policy clarity will be key to ensuring the resurgence fuels growth and stability rather than suspicion.
