Bangladesh Bank (BB) has decided to buy treasury bills and bonds from banks and non-bank financial institutions (NBFIs) to prevent any unwanted liquidity obstruction due to coronavirus outbreak.
“BB provides repo facility to the scheduled banks and NBFIs against the government securities. The central bank has taken a decision to strengthen the government securities' purchasing activities so that the banks and NBFIs don’t face any impediment due to the coronavirus,” said a BB circular issued on Sunday, reports BSS.
As per the new decision, interested commercial banks as well as NBFIs may sell their excess securities after complying with the statutory liquidity ratio (SLR).
The central bank asked the managing directors (MDs) and chief executive officers (CEOs) of banks and NBFIs to communicate with its department concerned, if necessary.
The banks may sell their surplus securities to the central bank from Monday at the market rate, the circular added.
