BB agrees to redefine banks’ stock exposure

The central bank has decided in principle to exempt banks’ investments in non-listed companies from capital market exposure, a move that can give banks plenty of room for fresh investments in the stock market.

The decision came at a meeting between the Bangladesh Bank, the Bangladesh Securities and Exchange Commission and the Financial Institutions Division (FID) of the finance ministry at the central bank headquarters in the capital yesterday.

The stock market regulator, stock exchanges and brokerage association have long been demanding the exclusion of banks’ investments in non-listed companies from the definition of capital market exposure.

But the central bank resisted, saying it might hurt depositors’ interest.