Dhaka, Mar 25 (UNB) – President of Dhaka Stock Exchange (DSE) M Rakibur Rahman on Monday called on financial institutions to hang on with their investment in the bourses for a longer period ahead of the oncoming national election.
“As it’s the election year, patience must be shown to ensure the stability of the capital market. The banks should keep the investment for a longer period of time,” he told a discussion meeting.
The discussion was organised by Association of Bankers Bangladesh (ABB) at a city hotel, aiming to find out solutions to the declining trend of the index.
The DSE president noted that if the banks go for bigger and longer investments, rather than withdrawing profits in quick intervals, the bourses can begin to surge again in two and a half years.
The banks can play a strong role in regaining the positive trend in the capital market by investing more in the coming days, Rakibur said, adding that at the banks are currently investing only about 2.5 percent of their loan liabilities.
Speaking on the occasion, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Kazi Akramuddin Ahmed recommended that the banks should reach a consensus for investing at least 5 percent of the liability in the capital market.
According to latest Bank Company Act, banks are allowed to invest 25 percent of their total paid-up capital, statutory reserve, retained earnings and share premium.
Managing directors of different commercial banks, present at the meeting, also recommended that the central bank should reduce the provisioning requirement against their investment in the share market to encourage the banks for investing more.
ABB chairman M Nurul Amin, Bangladesh Association of Publicly Listed Companies (BAPLC) president Tapan Chowdhury and Investment Corporation of Bangladesh (ICB) managing director Mohammad Faikuzzaman also spoke on the occasion.
Source: UNB Connect
