The central bank has said it will not take any step that may hurt the capital market.
Bangladesh Bank and the Securities and Exchange Commission (SEC) reached an understanding to this end at a meeting on Wednesday.
It was decided that the central bank would consult the SEC if an urgent measure involving banks and financial institutions was necessary that may impact the share market.
They also decided to work together to restore investors’ confidence in the market and overcome the lack of coordination between the two regulators.
Bangladesh Bank Deputy Governor Abu Hena Mohd Razee Hassan, Executive Directors Naushad Ali Chowdhury and SM Moniruzzaman, and SEC Commissioners Arif Khan and Amzad Hossain attended the meeting.
The deputy governor told reporters that the economy would remain sound if the currency and capital markets were stable.
He said a lack of coordination between the two watchdogs was evident before. “But from now one, the two organisations will make decision through discussions,” he said.
“We’ve reached this decision because some matters we need to know and some matter they have to know,” he added.
The central bank recently imposed a ceiling on the investment of commercial banks in the capital market.
It also asked the merchant banks and brokerage houses to provide it with their transaction statements on a daily basis.
The measures caused misunderstanding between the two organisations.
SEC Commissioner Arif said the meeting was held to avoid such confusion in future.
“We’ve held the bilateral meeting for the first time. Many matters have been discussed in the first meeting. More discussions will happen,” he said.
Arif said the central bank promised not to take any decision that might affect the capital market.
Source: Bd news24
