BB moves to appoint fresh primary dealers
Tuesday, 25 August 2009
FE Report
The central bank has sought applications afresh from commercial banks and financial institutions for appointment as primary dealers (PD)aiming to bring dynamism in the securities market.
"We've invited the banks and non-banking financial institutions (NBFIs) to submit applications for new PDs appointments by September 30 this year as the response received earlier was very poor," a senior official of the Bangladesh Bank (BB) told the FE Monday.
The central bank has called applications in January this year to appoint new PDs. But only one NBFI filed application to the BB for obtaining PD license in that period, the central bank officials confirmed.
"The interested banks and NBFIs will have to apply in prescribed forms providing required information about their businesses particularly in government approved securities transactions," the BB official added.
He also said at least three private commercial banks have already contacted the central bank in this connection.
The central bank earlier selected nine PDs - eight banks and an NBFI - to handle government-approved securities in the secondary market.
The BB has already amended the guidelines for PDs allowing them commission and liquidity support to activate the secondary security market.
The central bank has sought applications afresh from commercial banks and financial institutions for appointment as primary dealers (PD)aiming to bring dynamism in the securities market.
"We've invited the banks and non-banking financial institutions (NBFIs) to submit applications for new PDs appointments by September 30 this year as the response received earlier was very poor," a senior official of the Bangladesh Bank (BB) told the FE Monday.
The central bank has called applications in January this year to appoint new PDs. But only one NBFI filed application to the BB for obtaining PD license in that period, the central bank officials confirmed.
"The interested banks and NBFIs will have to apply in prescribed forms providing required information about their businesses particularly in government approved securities transactions," the BB official added.
He also said at least three private commercial banks have already contacted the central bank in this connection.
The central bank earlier selected nine PDs - eight banks and an NBFI - to handle government-approved securities in the secondary market.
The BB has already amended the guidelines for PDs allowing them commission and liquidity support to activate the secondary security market.