BB asks SCBs to invest provident funds in bonds
Wednesday, 22 October 2008
Siddique Islam
The central bank has asked the state-owned commercial banks (SCBs) to invest their general provident funds in government bonds aiming to strengthen the secondary securities market.
"We have advised the SCBs to invest minimum 60 per cent of their provident funds in the bonds," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the issue was discussed at the bankers meeting held at the central bank on Sunday.
"Such investment is risk-free and profitable. So, it should be implemented in different commercial banks in phases," the BB official added.
On the other hand, the primary dealers (PD) have planned to take different measures including appointment of agents outside the country to bring dynamism in the secondary market.
They also decided to introduce a uniform price quoting system for trading of the government securities in the secondary market.
The decision was taken at a meeting of the newly formed Primary Dealers Bangladesh Limited (PDBL), an association of PD's, held at the Prime Bank Limited Monday with its Chairman and Chief Executive officer of the Sonali Bank Limited SA Chowdhury in the chair.
"We will take opinions of our technical committee to introduce such price quoting system," a member of the PDBL told the FE, adding that the PDBL has taken an action plan to gear up the function of the PDs.
The central bank has asked the state-owned commercial banks (SCBs) to invest their general provident funds in government bonds aiming to strengthen the secondary securities market.
"We have advised the SCBs to invest minimum 60 per cent of their provident funds in the bonds," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the issue was discussed at the bankers meeting held at the central bank on Sunday.
"Such investment is risk-free and profitable. So, it should be implemented in different commercial banks in phases," the BB official added.
On the other hand, the primary dealers (PD) have planned to take different measures including appointment of agents outside the country to bring dynamism in the secondary market.
They also decided to introduce a uniform price quoting system for trading of the government securities in the secondary market.
The decision was taken at a meeting of the newly formed Primary Dealers Bangladesh Limited (PDBL), an association of PD's, held at the Prime Bank Limited Monday with its Chairman and Chief Executive officer of the Sonali Bank Limited SA Chowdhury in the chair.
"We will take opinions of our technical committee to introduce such price quoting system," a member of the PDBL told the FE, adding that the PDBL has taken an action plan to gear up the function of the PDs.