Home ›› 13 Aug 2021 ›› Front
The Bangladesh Bank has sought information from all scheduled banks regarding their daily transactions in the money market.
In a circular on Thursday, the central bank asked all scheduled banks to submit the respective information by 5pm on a daily basis.
Already, separate letters in this regard have been sent to chief executive officers and managing directors of all scheduled banks in the country.
In line with the directive, the BB sought information on fresh investments, sales value of securities, net exposures of subsidiaries, margin loans provided to the customers by the subsidiaries, margin loan adjustment by customers.
The daily information will give the central bank a clear picture of a bank’s investment activities, a senior official of the central bank told The Business Post.
Earlier, the BB asked all banks not to invest in unproductive sector. The latest instruction would help the central bank to track the unproductive investment of scheduled banks.
In recent weeks, media reports said that funds taken from stimulus packages were being invested in unproductive sectors, including the share market.
On the other hand, there was fear of diverting investment to unproductive sector as there is excess liquidity in the banking sector, which leads the central bank to be aware about the transactions of banks. According to the Bangladesh Bank, there is a surplus liquidity of Tk 2,31,462 crore in the banking sector till June.
Liquidity started to accumulate as the demand for loans remained low amid the Covid-19 pandemic. As a result, excess liquidity of the banks from going to the unproductive sector including the stock market.
