Bangladesh Bank asks SCBs to invest provident funds in bonds

Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has asked the state-owned commercial banks (SCBs) to invest their general provident funds in government bonds aiming to strengthen the secondary securities market.

“We have advised the SCBs to invest at least 60 per cent of their total provident funds in the government bonds,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.

The issue was discussed at the bankers meeting held at the central bank on Sunday, according to the official.

“Such investment is risk-free and profitable. So, it should be implemented in different commercial banks in phases,” the BB official noted.
Currently, four government bonds – 5-year, 10-year, 15-year and 20-year duration – are being traded in the markets.

BBN/SI/SS/AD-20October08-9:07 PM (BST)

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