Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has revised the underwriting obligations of four primary dealer (PD) banks and a non-banking financial institution (NBFI) in primary auctions of the government securities, which will come into effect from November 1.
Under the new provision, three state-owned commercial banks (SCBs) - Sonali, Janata and Agrani - will have to maintain 12.50 per cent of underwriting obligations in primary auctions of the government securities instead of the existing 12.00 per cent, officials said.
On the other hand, 11.50 per cent underwriting obligations has been re-fixed for Jamuna Bank Limited instead of the existing 12.00 per cent, while Intentional Leasing and Financial Services Limited will have to maintain 3.00 per cent from the existing 4.00 per cent.
The underwriting obligations of four other PDs have remained unchanged.
The central bank of Bangladesh earlier selected nine PDs - eight banks and a NBFI - to handle government-approved securities in the secondary market.
"The central bank has revised the underwriting obligations of the PDs to bring dynamism in the country's secondary securities market," a senior official of the Bangladesh Bank (BB), the country's central bank, told BBN in Dhaka.
The official also said the central bank reviewed the use of government securities for fulfillment of statutory liquidity ratio (SLR) of the respective PDs.
BBN/SI/SS/AD-27October08-4:16 PM (BST)