BB revises underwriting obligations of PD banks
Wednesday, 2 December 2009
Siddique Islam
The central bank has revised the underwriting obligations of primary dealer (PD) banks and financial institutions at the time of primary auctions of the government securities aiming to brining dynamism in the secondary securities market.
The revised underwriting obligations, which have been re-fixed after appointment of four new PDs, came into effect from Tuesday, officials said.
The four new PDs are Mercantile Bank Limited, Mutual Trust Bank Limited and non-banking institutions LankaBangla Finance Limited and IPDC.
With the addition of the new four, the number of PDs now stands at 13. Of them, 10 are commercial banks and three non-banking financial institutions (NBFIs).
"We've revised the underwriting obligations of the PDs aiming to bring dynamism in the country's secondary securities market," a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the central bank reviewed the underwriting obligations considering the statutory liquidity ratio (SLR) requirements of the respective PDs.
Under the revised provisions, three state-owned commercial banks (SCBs) - Sonali, Janata and Agrani -will have to maintain 10 per cent of underwriting obligations in primary auctions of the government securities instead of 12.50 per cent earlier.
On the other hand, the underwriting obligations for Jamuna Bank Limited has been re-fixed at 8.50 per cent instead of 11.50 per cent while three NBFIs will have to maintain 2.50 per cent at the time of auctions.
The central bank has revised the underwriting obligations of primary dealer (PD) banks and financial institutions at the time of primary auctions of the government securities aiming to brining dynamism in the secondary securities market.
The revised underwriting obligations, which have been re-fixed after appointment of four new PDs, came into effect from Tuesday, officials said.
The four new PDs are Mercantile Bank Limited, Mutual Trust Bank Limited and non-banking institutions LankaBangla Finance Limited and IPDC.
With the addition of the new four, the number of PDs now stands at 13. Of them, 10 are commercial banks and three non-banking financial institutions (NBFIs).
"We've revised the underwriting obligations of the PDs aiming to bring dynamism in the country's secondary securities market," a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the central bank reviewed the underwriting obligations considering the statutory liquidity ratio (SLR) requirements of the respective PDs.
Under the revised provisions, three state-owned commercial banks (SCBs) - Sonali, Janata and Agrani -will have to maintain 10 per cent of underwriting obligations in primary auctions of the government securities instead of 12.50 per cent earlier.
On the other hand, the underwriting obligations for Jamuna Bank Limited has been re-fixed at 8.50 per cent instead of 11.50 per cent while three NBFIs will have to maintain 2.50 per cent at the time of auctions.