Dhaka:The Dhaka Stock Exchange Brokers Association of Bangladesh (DBA) has called on Bangladesh Bank to increase the special fund facility for the capital market from Tk 200 crore to Tk 300 crore per scheduled bank and to extend the facility's tenure by another five years, until November 30, 2031.
According to United News of Bangladesh, the DBA highlighted the necessity of this move to address the ongoing liquidity crisis in the stock market, enhance institutional investment, and strengthen investor confidence. The association submitted a formal letter to Bangladesh Bank Governor Mostaqur Rahman on Tuesday, with a copy also sent to Bangladesh Securities and Exchange Commission Chairman Masud Khan.
The special fund facility introduced by Bangladesh Bank has been credited by the DBA with positively impacting institutional investment capacity, market liquidity, stability, and investor confidence. Currently, the facility allows each scheduled bank to create a special fund of up to Tk 200 crore, set to expire on November 30, 2026.
The DBA emphasized that in light of the liquidity crisis and global uncertainty due to Middle East tensions, the facility should be reinforced. Raising the limit and extending the tenure is expected to increase investment, market liquidity, and investor confidence, contributing significantly to the capital market's sustainable development.
The association expressed optimism that Bangladesh Bank would consider the current market situation and national economic interests to implement these changes. The DBA also reaffirmed its commitment to collaborating with Bangladesh Bank and other regulators to support the government's capital market development initiatives.