Dhaka, Bangladesh (BBN)- Both the Bangladesh Bank (BB) and the Bangladesh Securities and Exchange Commission (BSEC) will be strengthened coordination between the two regulators for betterment of the capital market.
The decision was taken at a meeting of the senior officials of BSEC held in the central bank on Wednesday with Deputy Governor of the BB Abu Hena Mohammad Razee Hassan in the chair.
“We’ve discussed different issues including investment of the banks in the capital market,” a BB senior official told BBN in Dhaka after the meeting.
He also said it’s an ongoing process to develop bilateral relationship between the two regulators for ensuring stability in the country’s capital market. “It was necessary to avoid misperception about coordination of the two regulatory bodies.”
The meeting also discussed about the implementation of rules and regulations relating to share market exposures by the commercial banks in line with the Banking Companies (Amended) Act 2013.
Earlier on September 16 last year, the BB asked the commercial banks to bring down their overall capital market investment within 25 per cent of total capital by July 21, 2016 to minimise risks in investment portfolios.
The banks are allowed to adjust their capital market exposures gradually without hindering the activities of the market, the central banker explained.
The central bank has already intensified its monitoring and supervision of investment in share market by the commercial banks aiming at avoiding any unwanted situation in future.
BBN/SSR/AD-07May14-5:01 pm (BST)
