The central bank’s policy supports announced for adjusting the banks’ over exposure in the capital market. The stakeholders concerned said no impact of the Bangladesh Bank’s (BB) policy supports was reflected in the market. The supports could not create any vibe, as investors are yet to be clear about the measures.
“After issuance of the circular regarding adjustment of the banks’ over exposure, the investors will be able to realize the benefits of the central bank’s policy supports,” said Ahmad Rashid Lali, a former director of the Dhaka Stock Exchange (DSE). On Wednesday, the central bank said ‘no sale pressure would be created’ on the banks after providing such policy supports.
“The banks also need not sell off shares,” the central bank said. According to BB, the policy supports include restructuring of components taken into account for calculating exposure limit, internal adjustment of exposure, and enhancement of capital of the banks’ subsidiaries. The stakeholders concerned have been demanding the extension of time frame for adjusting the bank’s over exposure in the capital market. DSE stock broker and former director Mr. Lali said BB’s initiative of adjusting over exposure is better than extension of time frame.
“So far I know, the central bank will allow the banks in capitalizing their over exposure.” He said the banks’ loans provided to subsidiaries would also be converted into equity investments. “More investment scopes will be created, if the components of exposure calculation are restructured. So, I think the central bank’s policy supports are better than extension of timeframe for adjusting over exposure.