Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has relaxed provisions allowing the banks to submit their reports on subsidiaries’ investment in stock market on weekly basis instead of daily basis.
Under the amended provisions, the commercial banks have to submit their capital market day-to-day stock market investment reports every Thursday.
“The latest instruction comes into effect from Sunday,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
As part of intensifying monitoring and supervision of investment in share market by the commercial banks, the BB asked the banks on January 16 last to submit their capital market investment reports in every working day.
Besides, the banks have to submit reports on their share-holding position on a monthly basis in a prescribed form to the BB’s Department of Off-site Supervision within the 10th of each month.
“We’ve taken the issue as a top priority matter to minimise risks of the banks,” the central banker explained.
The central bank has taken the latest measure against the backdrop of some banks increasing investment in the share market instead of bringing it down 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 noted.
BBN/SSR/AD-09Mar14-10:40 am (BST)