Bangladesh Bank Steps Back On Capital Market Issue

Bangladesh Bank and the Securities and Exchange Commission (SEC) reached an understanding that the central bank will not take any step that may hurt the capital market.

It was decided that the central bank would consult the SEC if an urgent measure involving banks and financial institutions was necessary that may impact the share market.

They also decided to work together to restore investors’ confidence in the market and overcome the lack of coordination between the two regulators.

Bangladesh Bank Deputy Governor Abu Hena Mohd Razee Hassan, Executive Directors Naushad Ali Chowdhury and SM Moniruzzaman, and SEC Commissioners Arif Khan and Amzad Hossain attended the meeting.

The central bank recently imposed a ceiling on the investment of commercial banks in the capital market.

It also asked the merchant banks and brokerage houses to provide it with their transaction statements on a daily basis.

The measures caused misunderstanding between the two organisations.

SEC Commissioner Arif said the meeting was held to avoid such confusion in future.