Business News

BANGLADESH BANK LOANS CITY BANK TK 50CR FOR STOCK INVESTMENT

The Bangladesh Bank on Monday released Tk 50 crore in loan in favour of The City Bank for investing in the capital market in line with the central bank’s move to support ailing stock market. On September 22 this year, the BB created the scope for the scheduled banks for borrowing from the central bank in the form of Repurchase Agreement (REPO) at the rate of 6 per cent interest for investments in the capital market. BB officials said that the central bank released Tk 50 crore to The City Bank after the bank had applied for the loan. Several other banks are preparing for taking the funds from the central bank.

The BB is giving the facility to increase fund flow to the stock market which has been suffering from shortage of liquidity. The core index of Dhaka Stock Exchange witnessed 1,200-points drop amid breathless fall in last nine months that made the government worried over the market situation.

The Investment Corporation of Bangladesh on Monday said that it received Tk 200 crore from state-owned Sonali Bank and the fund would be invested in the secondary market. ICB managing director Abul Hasem made the comments at a meeting with the Dhaka Stock Exchange Brokers Association on Monday.

Earlier, the ICB sought Tk 1,000 crore from five state-owned banks and Tk 1,000 crore from the Bangladesh Bank to inject those in the ailing stock market.

Hasem said that the ICB’s subsidiary institutions would also invest in the stock market to recoup investors’ confidence.

The ICB will continue support the capital market, but other institutions should also come forward, he added.

Source: New Age, 15.10.2019

Link: http://www.newagebd.net/article/87677/bangladesh-bank-loans-city-bank-tk-50cr-for-stock-investment