Central bank agrees to exclude banks’ bond investment from their capital market exposure
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Wednesday
July 06, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
WEDNESDAY, JULY 06, 2022
Central bank agrees to exclude banks’ bond investment from their capital market exposure

Stocks

TBS Report
30 November, 2021, 09:40 pm
Last modified: 30 November, 2021, 09:44 pm

Related News

  • BB asks banks to keep branches open in Dhaka cattle market areas on 8-9 July
  • 100% LC margin slapped to discourage imports of cars, electronics
  • Saeda Khanam promoted to the post of Bangladesh Bank director 
  • SIBL receives sustainability rating recognition
  • Eastern Bank wins BB’s Sustainability Rating Award

Central bank agrees to exclude banks’ bond investment from their capital market exposure

The decision was made at a meeting with the stock market regulator the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday

TBS Report
30 November, 2021, 09:40 pm
Last modified: 30 November, 2021, 09:44 pm
Photo: Collected
Photo: Collected

The Bangladesh Bank, the money market regulator, has agreed to exclude banks' bond investments from their capital market exposure calculation.

The decision was made at a meeting with the stock market regulator the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday.

Central bank's Deputy Governor AKM Sajedur Rahman Khan and other officials were present at the meeting.

At a press conference after the meeting, BSEC Commissioner Dr Shaikh Shamsuddin Ahmed said the central bank had responded positively to the BSEC proposal for basing banks' capital market exposure calculation on the cost price of securities – instead of the current mark to market method.

In stock markets in other countries of the world, even in India and Vietnam, a bank's investments are valued at purchase price, but only in Bangladesh it is done so at market price, he said.

"The Bangladesh Bank would also allow banks to comply with the corporate governance code that would enable banks to get 20% independent directors and form nomination and remuneration committees," Dr Shamsuddin said.

He said they explained that adherence to a corporate governance code would help ensure good governance of the bank and the Bangladesh Bank officials agreed.

The central bank had said no bank would be able to pay dividends if it had accumulated losses. According to the BSEC, however, dividends can be paid if the accumulated losses are in accordance with international accounting standards. This standard is followed all over the world, Shamshuddin said.

He said the Bangladesh Bank assured the stock market regulator that it would take appropriate action if such a matter was brought to the central bank's attention. 

The BSEC commissioner said the Bangladesh Bank had objected to the use of certain terms in the Capital Market Stabilisation Fund Act. "We will issue another circular clarifying the law. This will cut any ambiguity."

Shamshuddin expressed hope that the central bank would come up with the necessary amendments in the coming days.

A central bank official, on the condition of anonymity, said, "Unclaimed dividends of shareholders can be sent to the Capital Market Stabilisation Fund. The central bank will look to quickly solve any problems in this regard. Banks will be able to send unclaimed dividends by December.

"Necessary steps will also be taken to comply with international accounting standards in the declaration of dividends. But the law has to change for other things. Moreover, these issues need further discussion."

 

Top News / Banking

central bank / Bangladesh Bank (BB) / BSEC / bond investment / capital market exposure

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • China-led trade bloc holds promise, with some caveats
    China-led trade bloc holds promise, with some caveats
  • British Chancellor of the Exchequer Rishi Sunak listens as British Prime Minister Boris Johnson addresses his cabinet on the day of the weekly cabinet meeting in Downing Street, London, Britain June 7, 2022. Leon Neal/Pool via REUTERS
    UK Johnson plunged into crisis as Sunak, health minister quits
  • Representational Image. Photo: Pixabay
    Load shedding the best course of action for now: Experts

MOST VIEWED

  • ADN Telecom to invest in fire safety business
    ADN Telecom to invest in fire safety business
  • Photo: Mumit M
    DSE returns money embezzled by 3 brokerage houses
  • Dhaka Fisheries plans to resume operation
    Dhaka Fisheries plans to resume operation
  • IFC to invest $50m in Brac Bank’s housing bond
    IFC to invest $50m in Brac Bank’s housing bond
  • IDLC Securities opens digital booth in Bogura 
    IDLC Securities opens digital booth in Bogura 
  • Intraco Refueling Station to merge with subsidiaries for tax benefit
    Intraco Refueling Station to merge with subsidiaries for tax benefit

Related News

  • BB asks banks to keep branches open in Dhaka cattle market areas on 8-9 July
  • 100% LC margin slapped to discourage imports of cars, electronics
  • Saeda Khanam promoted to the post of Bangladesh Bank director 
  • SIBL receives sustainability rating recognition
  • Eastern Bank wins BB’s Sustainability Rating Award

Features

The OPEC+ group of 23 oil-exporting countries met virtually on Thursday. Photo: Bloomberg

OPEC+ did its job, but don’t expect it to disappear

11h | Panorama
Mirza Abdul Kader Sardar with AK Fazlul Haque, Chief Minister of Bengal, at Haque's reception at the Lion Cinema, Dhaka, 1941. Photo: Collected

Panchayats: Where tradition clings to survival

12h | Panorama
Illustration: TBS

Universal Pension Scheme: Has it been thought through?

14h | Panorama
Last month Swapan Kumar Biswas, the acting principal of Mirzapur United College, was forced to wear a garland of shoes for ‘hurting religious sentiments.’ Photo: Collected

Where do teachers rank in our society?

1d | Panorama

More Videos from TBS

Sheikh Kamal Business Incubator to be inaugurated at CUET Wednesday

Sheikh Kamal Business Incubator to be inaugurated at CUET Wednesday

3h | Videos
Tejgaon becoming uninhabitable for illegal rickshaw garages, truck stands

Tejgaon becoming uninhabitable for illegal rickshaw garages, truck stands

3h | Videos
50 companies plan to invest big in South

50 companies plan to invest big in South

4h | Videos
Alal, Dulal sell for Tk30 lakh

Alal, Dulal sell for Tk30 lakh

5h | Videos

Most Read

1
TBS Illustration
Education

Universities may launch online classes again after Eid

2
Meet the man behind 'Azke amar mon balo nei'
Splash

Meet the man behind 'Azke amar mon balo nei'

3
Padma Bridge from satellite. Photo: Screengrab
Bangladesh

Padma Bridge from satellite 

4
World Bank to give Bangladesh $18b IDA loans in next five years
Economy

World Bank to give Bangladesh $18b IDA loans in next five years

5
Illustration: TBS
Interviews

‘No Bangladeshi company has the business model for exporting agricultural product’

6
Lee Hyun-seung (third from right), head of Korea Expressway Corp.'s Overseas Project Division, shakes hands with Quazi Muhammad Ferdous, head of the Bridge Authority of Bangladesh, after signing a contract on June 29 (local time).
Bangladesh

Korean company to oversee N8 Expressway in Bangladesh

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab
BENEATH THE SURFACE
Workers ready a passenger vessel with a fresh coat of paint to the deck ahead of the Eid-ul-Azha at a dockyard at Mirerbagh in South Keraniganj. The vessel getting the makeover plies the Bhandaria route and will take holidaying people from the city to their country homes. Eid will be celebrated on 10 June this year. The photo was taken on Monday. Photo: Mumit M

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net