Dhaka, Bangladesh (BBN) – The country’s commercial banks have so far invested nearly BDT 90 billion in the form of loans to, and paid-up capital of, their subsidiaries — brokerage houses and merchant banks — for investment in the country’s share markets.
The scheduled banks have disbursed BDT 56 billion as loans to their 33 brokerage houses and merchant banks until now, while BDT 32 billion has been invested in the form of paid-up capital to form their securities’ companies as the subsidiaries, according to the central bank statistics.
“Besides, the banks have invested additional funds in their own portfolios, in line with the existing rules and regulations,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
He also said the brokerage houses and merchant banks are now allowed to provide margin loans to their clients for purchasing shares.
Total investment in shares by all 47 commercial banks were more than BDT 106 billion as on June 30 this year, the BB data showed.
BBN/SSR/AD-20Oct11-10:20 am (BST)
