Dhaka, Bangladesh (BBN) – The central bank of Bangladesh will sit with three more private commercial banks (PCBs) separately, which have exceeded the share holding limit, this week, officials said.

“We’ve found that three private commercial banks crossed their holding limit in the capital market investments on the basis of their monthly statement regarding holding of shares and exposure limit for August this year,” a senior official of the Bangladesh Bank (BB) said.

Earlier, the BB identified that eight private commercial banks crossed their exposure limit in the capital market investment in June last.

Separate timeframes have been given to eight banks for brining down their holding and exposure within the prescribed limit through different measures, the central bank official added.

Under the provisions, banks will be allowed to invest not more than 10 per cent of their total liabilities in the capital market.

Besides, the banks will have to ensure holding of shares in line with the existing Bank Companies Act, the central bank officials said.

Under the existing law, no bank company shall be empowered to hold shares of other companies whether as pledge or mortgage or as exclusive owner of an amount exceeding (a) thirty per cent of the total amount of the paid-up capital and reserve of the said company and (b) thirty per cent of the paid-up capital of the said company.

The amount of the shares fixed by any bank company shall, in total, not exceed 10 (ten) per cent of its whole obligations, the act said.

BBN/SI/ANS-02Oct10-11:07 am (BST)