Banks asked to provide monthly investment data

The Bangladesh Bank has asked banks to submit information on their Tk 200 crore special fund for capital market investment, on monthly basis instead of quarterly.

The central bank announced the instruction in a circular issued on Tuesday.

In February last year, the central bank allowed all scheduled banks to form a special fund of Tk 200 crore each for investment in the capital market.

“Details on special fund for the stock market should be submitted to the BB’s Off-site Supervision Department at the end of each month by 5th of the following month,” said the central bank in the circular.

The details sought by the central bank include information regarding concerned bank accounts and BO accounts being used for the stock market investment.

Previously, banks submitted the details at the end of three months by 15th of the following month. 

The fund can be drawn from the bank’s own resources or borrowing money from the central bank through treasury bills or bond repurchase agreements or repos at a 5 per cent interest rate.

The fund would be valid till February 2025 and the banks will be allowed to take money under the scope till January 13, 2025.

As of Tuesday, the country’s banks formed a total of Tk3,500 crore in funds for investment in the stock market, of which Tk1,700 crore has already been invested.