BB to take capital mkt decisions only after talks with BSEC

The Bangladesh Bank (BB) is taking supportive measures for stability in the capital market through intensive coordination with and assistance to the securities regulator.   
BB Governor Dr. Atiur Rahman Saturday said this while he unveiled the Monetary Policy Statement (MPS) for July-December period, 2014.
"The BB and the securities regulator are also reviewing the existing rules to ease the supply of private equity," the governor said in his speech.
In its MPS, the BB said that it would continue to collaborate with the Bangladesh Securities and Exchange Commission (BSEC) through regular coordination meetings regarding capital market stability and development issues.

BB Deputy Governor SK Sur Chowdhury said the central bank, through its monetary policy, would not do anything that can affect the capital market.
 "The capital market-related decisions will be taken after discussions with the securities regulator." Mr. Chowdhury said in his answer to questions regarding  the capital market.
While speaking on the BB's role in monitoring the banks' investment in the capital market, Mr. Chowdhury said the central bank cannot do anything beyond the rules.
"The BB will continue its cooperation so that the banks can invest in the capital market in line with the rules. But the monetary policy will not affect the capital market."
He said the banks are being provided with facility of provisioning their losses, which have been incurred due to investment made in the capital market through five quarters.
"The facility will also exist this year," he said.
The deputy governor said the BB has been continuing its coordination in implementing the capital market refinancing scheme under the leadership of the securities regulator.
In its MPS, the BB said, "It will continue to encourage larger borrowers to access the capital market given single borrower exposure limits for banks."