Effective development of bond mkt highlighted

A recent webinar emphasised the role of government and regulators and credit rating agencies for effective development of bond market by taking into consideration of some core issues.

The issues include fixing optimum risk free rate of return, discouraging long term lending by banks, improving quality of audit and credit rating, attracting local and international institutional investors for development of sustainable bond market in Bangladesh.

CRISL, the premier rating agency of the country, organized the webinar on "Sustainable Bond Market in Bangladesh: The Way Forward".

The objective of the seminar was to develop interaction among the national and international experts on the issue and share the same with the concerned regulators on the subject.

Mr. Muzaffar Ahmed FCMA FCS, President and CEO of CRISL, presented the keynote paper highlighting the need of change in the present long-term financing by the banks, a high powered team to monitor the regulatory frame work, a strong and effective rating industry for effective credit rating. Mr. Faheem Ahmed, Vice President of Association of Credit Rating Agencies in Asia (ACCRA) and consultant to the Islamic International Rating Agency Bahrain, highlighted the global bond market trend and effectiveness vis a vis the need of showcasing Bangladesh before the international community through development of bond market which is considered to be a barometer of development. Dr. Dogra, former CEO of CARE Ratings, India, presented the current position of bond market development in India and the fact that most of the corporate bonds go with high credit rating. Mr. Arif Khan MD and CEO of IDLC Finance, highlighted the present position of bond market and explained the underlying reasons for poor bond market and actions required in this connection at this stage of Bangladesh economy.

Mr. Mohammad Rezaul Karim, Executive Director of Bangladesh Securities and Exchange Commission (BSEC) explained the efforts and actions so far taken by BSEC for bond market while Mr. Aminur Rahman Chowdhury, Deputy General Manager of Bangladesh Bank informed that presently whatever corporate bonds are there all are based on private placement. He emphasized the need for long term finance in the market through issue of corporate bond in the country's current context where most of the project financing is done by the banking sector .

Almost 100 finance professionals from various companies and government enterprises participated on this virtual program. Dr. Syed A. Mamun FCMA, Deputy CEO of CRISL, moderated the program.