BAB plans to launch Tk 50b market stabilisation fund
October 23, 2011 00:00:00
Private banks are planning to launch a Tk 50 billion market stabilisation fund (MSF) aimed at propping up the country's flagging stock market, an association representing the lenders announced Saturday.
Members of the Bangladesh Association of Banks (BAB), a platform of bank owners, will finalise the modus operandi of the proposed fund at an emergency meeting today (Sunday), its chairman Nazrul Islam Mazumdar told the FE Friday.
"BAB members will sit and set the terms for launching of an asset management company (AMC), which will manage the fund. Our aim is to involve as many banks as possible and may also open the door for insurers for investing in the fund," he said.
Mazumdar rejected as "speculations" that the fund would have a ceremonial launching Sunday, saying that some crucial decisions including the starting date of the AMC, its approval procedure and appointment of its officials have yet been made.
He said the fund would help revitalise the moribund stock market, which has declined around 35 per cent this year -- its worst performance since 1997 when the Dhaka Stock Exchange (DSE) lost 67 per cent.
"The market stabilisation fund will inject new liquidity in the market by trading
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