No chance of capital mkt debacle now : Muhith

Finance Minister AMA Muhith said Thursday that there is no chance of any debacle or large-scale forgery in the country's capital market now thanks to legal reforms made during the last three years.
The market has become the most stable one in the region after the massive collapse it witnessed in 2010, he said while speaking as the chief guest at the Bangladesh Development Bank Limited (BDBL) business development conference held at a city hotel.
"There is no chance of any debacle or massive forgery because of the rules and regulations approved by the Bangladesh Securities and Exchange Commission (BSEC)," the minister said.  
He said the reforms in the capital market could be easily done because it experienced crash in 2010.
"We learned from the 'great collapse' and could easily introduce the rules and regulations many of which our neighbours could not do during the last 10 years," he said.
Muhith expressed the hope that the country's capital market would get a massive investment flow from both local and foreign sources in the near future.
BDBL Board Chairman Prof Shanti Narayan Ghosh presided over the conference where State Minister for Finance MA Mannan, Bank and Financial Institution Division Secretary Dr M Aslam Alam, BDBL Managing Director Dr Zillur Rahman and Director Quazi Murshid Hossain Kamal also spoke.
The minister asked the BDBL to retain its investment banking characteristic where the government may provide necessary low-cost fund.
"The BDBL is formed by merger and acquisition of two specialised investment banks - Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangstha (BSRS). So the bank should continue as investment banking in addition to other banking services," Muhith said.
The minister asked the BDBL management to place a proposal to the government as to how it can continue investment banking and can participate in the capital market.
He suggested that the state-owned banks should enhance their internal control system and risk management to reduce classified loans and curb other banking forgeries.
Mr Alam expressed his dissatisfaction over the negative performance of most of the state-owned banks' balance sheets.
"The economic indicators of most of the state-owned banks' balance sheets are negative. Their capital base is poor while loan classification is increasing," he said.
He suggested that the BDBL should expand its service across the country by using agent banking system.
He appreciated the BDBL for its strong capital base and profitability.