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DBA demands raising banks’ special capital market fund to Tk300cr

DBA demands raising banks’ special capital market fund to Tk300cr
DBA logo: Collected
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DSE Brokers Association of Bangladesh (DBA) has demanded an increase in the special capital market fund limit for each scheduled bank from Tk200 crore to Tk 300 crore to boost liquidity and institutional investment in the capital market.

The organisation has also proposed extending the tenure of this facility by five years until 30 November 2031. A letter regarding the proposal, signed by DBA President Saiful Islam, was sent to Bangladesh Bank Governor Mostaqur Rahman on 6 October, with a copy forwarded to Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan.

Currently, each scheduled bank can form a special fund of up to Tk200 crore, with the facility set to expire on 30 November 2026.

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Under the DBA’s proposal, the fund facility would remain in place from 1 December 2026 to 30 November 2031, with the individual bank ceiling raised to Tk300 crore.

Citing the ongoing liquidity crunch in the capital market and global uncertainty caused by Middle East tensions, the DBA stated that the facility should be strengthened rather than withdrawn.

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According to the organisation, raising the limit and extending the duration would enhance institutional investment, market liquidity, market depth, and investor confidence.

The DBA noted that Bangladesh Bank’s special fund previously played a positive role in boosting institutional investment capacity, market stability, and investor confidence.

Considering the current capital market situation and overall economic interests, the DBA expressed hope that Bangladesh Bank will take the necessary measures in this regard.

The organisation also affirmed its commitment to continue coordination and cooperation with Bangladesh Bank and other relevant regulatory bodies to implement government plans for capital market development.

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