Govt approving new merchant banks, mutual funds: Muhith

The government is approving new merchant banks and mutual funds aiming to maintain normal liquidity flow in the capital market, Finance Minister AMA Muhith told Jatiya Sangsad (parliament) on Tuesday. ‘As a result the institutional investment is increasing in the (capital) market,’ he said, answering a tabled starred question of M Rustam Ali Farazi (Indpendent-Pirojpur). The Finance Minister categorically said at present, there is no deep liquidity crisis, not even any sort of liquidity crisis, in the capital market. He informed that the central bank imposed ‘exposure limit’ on the commercial banks regarding their investment in capital market. Muhith said this type of limit is imposed with a view to protect the interest of the investors and restrict banks from being trapped in the liquidity crisis. ‘The commercial banks have to follow the exposure limit while going to invest in the capital market,’ he added, according to UNB.