President of Bangladesh Merchant Bankers Association (BMBA) Sayadur Rahman terms BB’s latest initiative to revitalise capital market a milestone. He said the central bank's market supportive measures encouraged investors to hold their position on sector-wise securities.
Besides, investors relied on the market as the government has taken many steps including enhancing the participation of state-owned banking and non-banking institutions in the capital market to revive the capital market, he informed. Sayadur Rahman made the statement while briefing to newsmen in the city’s hotel on Saturday.
Bangladesh Bank on Monday allowed 59 scheduled banks to form a Tk 2.0 billion special fund each by taking low-interest loans from the BB for five years to invest in the stock market, he added. In the continuing fall of shares, BMBA recently appealed to the government to set up a fund to invest in the stock market, he said adding that, “As part of its move, the central bank has given special funds to banks for investing to the capital market.”
The commercial banks can collect funds through their own source or Treasury bill from Bangladesh Bank, he informed. Banks will be able to collect the funds from Bangladesh Bank at a rate of 5 percent interest, which will take five years to repay, he said adding that, banks can lend from this fund with a maximum interest of 7 percent.
The government has taken many initiatives to rebound capital market, he mentioned. Besides, the new leadership of BMBA also will work on eight issues to build strong capital markets.
These include take necessary steps to create skilled investors for by providing educational training, protect and coordinate regular contact with the policy-makers of the government, to maintain the interest of the investors in coordination with all concerned parties of the capital market and show proper respect for good entrepreneurs.
Besides, BMBA will try to coordinate with the concerned parties regarding enrollment of large quality industries and business enterprises in order to increase the size of the capital market as well as to organize a comprehensive seminar every six months with a view to investing in the overall market. General Secretary of BMBA Riyadh Matin, Vice President Moniruzzaman, executive members Mahbub H Majumder, Noor Ahmed and Md Hamdul Islam were also present on the occasion.
