BB allows banks to invest more in stock market

The banking sector may come forward to inject some fresh investment into the stock market as Bangladesh Bank (BB) relaxed the rules connected with the banks' capital market exposure, reports BSS.
The central bank in a directive yesterday discarded its earlier decision of calculating banks' investment in the stock market on both solo and consolidated basis. The decision will be effective from January 1, 2016.
Considering the latest situation of the country's capital market and strengthening of BB's policy to the stock market, it has decided that the equity shares in approved subsidiaries of the banks, invested on solo basis, should not be included in their total exposure to the capital market, BB said.
The BB's decision came when the country's capital market had been facing shortfall of fresh fund injection. Dhaka and Chittagong stock exchanges closed lower yesterday mainly because of lower demand.
Market analysts expect that the banks would have further edge to increase their investment in the stock market.

BB allows banks to invest more in stock market

The banking sector may come forward to inject some fresh investment into the stock market as Bangladesh Bank (BB) relaxed the rules connected with the banks capital market exposure, reports BSS. The central bank in a directive yesterday discarded its earlier decision of calculating banks investment in the stock market on both solo and consolidated basis. The decision will be effective from January 1, 2016. Considering the latest situation of the countrys capital market and strengthening of BBs policy to the stock market, it has decided that the equity shares in approved subsidiaries of the banks, invested on solo basis, should not be included in their total exposure to the capital market, BB said. The BBs decision came when the countrys capital market had been facing shortfall of fresh fund injection. Dhaka and Chittagong stock exchanges closed lower yesterday mainly because of lower demand. Market analysts expect that the banks would have further edge to increase their investment in the stock market.