• Tuesday, Feb 25, 2020
  • Last Update : 12:27 am

BB to ensure liquidity for boosting capital market

  • Published at 11:07 pm January 19th, 2020
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The Bangladesh Bank building at Motijheel Mehedi Hasan/ Dhaka Tribune

BMBA President and EBL Investments Ltd Director Md Sayadur Rahman,  BMBA General Secretary and BMSL Investment Ltd Managing Director Riyad Matin were present in the meeting

Bangladesh Bank (BB) would provide policy support and ensure enough liquidity for boosting the capital market, said BB executive director and spokesperson Md Serajul Islam on Sunday.

“As soon as possible the central bank will announce a scheme on liquidity supply and policy support to boost stock market in the long run after a meeting with the finance minister,” he also said in a media briefing after a meeting with the central bank Governor Fazle Kabir and a delegation of Bangladesh Merchant Bankers Association (BMBA).   

BMBA President and EBL Investments Ltd Director Md Sayadur Rahman,  BMBA General Secretary and BMSL Investment Ltd Managing Director Riyad Matin were present in the meeting. 

Serajul Islam said the meeting discussed the current situation of stock market specially the BMBA proposal about funding the market. The BB governor assured them of providing the required support for boosting the market, he added. 

Talking to Dhaka Tribune, BMBA President Md Sayadur Rahman said, “We met the central bank governor for liquidity supply into the market. The BB governor responded positively. The regulatory body is working on the matter.”

Earlier, institutional investors sought Tk10,000 crore from the government to support the retail investors who incurred losses in their stocks they had bought on margin loans.

In this connection, top financial investors (broker and merchant banks) in the capital market sent a letter to finance minister, BSEC chairman and the Bangladesh Bank governor seeking the fund in the form of either credit or financial support.

Meanwhile, DSEX, the broad index of Dhaka Stock Exchange (DSE) declined 24.8% in the past 52 weeks. In the first 10 trading sessions in the new year, the market lost Tk26,154cr or 7.7% capitalization in continuation of the last year's Tk51,732 crore or 12.33% market cap loss. The key index, DSEX, of Dhaka bourse lost 416 points in the sessions.