BB, chief executives of PDs discuss mkt situation today
Monday, 23 July 2007
FE Report
The Bangladesh Bank (BB) will meet the chief executives of all primary dealer banks and a non-banking financial institution (NBFI) today (Monday) to discuss the overall market situation.
The PDs are likely to raise some issues including the existing rules on devolvement relating to government-approved securities, liquidity support, underwriting commission, interest rates on treasury bills at the meeting aiming to bring dynamism in the market etc., sources concerned said.
"We want the central bank to devolve 50 per cent of the total amount of government approved securities so that they could survive in the market," a PD told the FE Sunday.
Currently, the PDs are facing liquidity problem for complying with the existing rules on devolvement relating to government-approved securities.
The PDs may urge the central bank to extend the period of liquidity support to six months instead of the existing one month to ensure investment in long-term securities, he added.
The central bank earlier selected nine PDs - eight banks and one NBFI - to handle government-approved securities.
All PDs met at a state-owned commercial bank recently to review the overall situation and took a decision to negotiate on some issues with the central bank through their chief executives.
The central bank has already amended the guidelines for PDs allowing commission and liquidity support to activate the country's secondary bond market.
The Bangladesh Bank (BB) will meet the chief executives of all primary dealer banks and a non-banking financial institution (NBFI) today (Monday) to discuss the overall market situation.
The PDs are likely to raise some issues including the existing rules on devolvement relating to government-approved securities, liquidity support, underwriting commission, interest rates on treasury bills at the meeting aiming to bring dynamism in the market etc., sources concerned said.
"We want the central bank to devolve 50 per cent of the total amount of government approved securities so that they could survive in the market," a PD told the FE Sunday.
Currently, the PDs are facing liquidity problem for complying with the existing rules on devolvement relating to government-approved securities.
The PDs may urge the central bank to extend the period of liquidity support to six months instead of the existing one month to ensure investment in long-term securities, he added.
The central bank earlier selected nine PDs - eight banks and one NBFI - to handle government-approved securities.
All PDs met at a state-owned commercial bank recently to review the overall situation and took a decision to negotiate on some issues with the central bank through their chief executives.
The central bank has already amended the guidelines for PDs allowing commission and liquidity support to activate the country's secondary bond market.