DBA proposes raising banks’ capital market fund to Tk 300 crore and extending its tenure by five years
Photo: Collected
The DSE Brokers Association of Bangladesh (DBA) has demanded that the limit of Bangladesh Bank’s special fund facility be raised from Tk 200 crore to Tk 300 crore for each scheduled bank and that its tenure be extended by another five years, in order to tackle the ongoing liquidity crisis in the country’s capital market, increase institutional investment and strengthen investor confidence.
A letter on the matter signed by DBA President Saiful Islam was sent on 6 October to Bangladesh Bank Governor Md Mostakur Rahman. A copy of the letter was also sent to Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC).
The DBA said the special fund facility introduced by Bangladesh Bank for investment in and development of the capital market has played a positive role in raising institutional investment capacity, market liquidity and stability, and investor confidence. At present each scheduled bank can form such a fund of up to Tk 200 crore. Its current tenure is due to end on 30 November.
The DBA’s proposal calls for raising the fund limit to Tk 300 crore and extending its tenure from 1 December 2026 to 30 November 2031.
The association believes that if the facility is continued and expanded even amid the global uncertainty caused by the ongoing tension in the Middle East, liquidity, depth and institutional investment in the capital market will increase and investor confidence will be strengthened.
The DBA expressed hope that Bangladesh Bank will take the necessary steps for the long-term and sustainable development of the capital market.
