ABB to urge banks to invest in share markets

Dhaka, Bangladesh (BBN) – The Association of Bankers, Bangladesh (ABB) is likely to urge its member banks to invest fresh funds in stock market after fulfilling the central bank’s requirements.

“We’ll meet within this week in this connection,” ABB Chairman K Mahmood Sattar said on Monday, adding that they are also thinking of rescheduling margin loans to create a ‘comfort zone’ for their subsidiaries, brokerage houses and merchant banks.

ABB Vice-Chairman Mohammed Nurul Amin also said it is the time for investment in the share market by individual, institutional and foreign investors along with the banks, considering the overall situation.

“Al least 36 commercial banks, out of 47, are still allowed to invest in the market,” Mr Amin said, adding that 11 commercial banks have already exceeded their capital market investment limit.

Currently, the banks are allowed to invest maximum 10 per cent of liabilities in the capital market, according to the central bank instructions.

BBN/SSR/AD-18Oct11-2:01 am (BST) 

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