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Bank & Finance - March 21, 2022

Merchant Bankers seek Tk 10,000cr to sustain capital markets

Staff Correspondent: The Bangladesh Merchant Bankers’ Association (BMBA) sought a special fund of Tk 10,000 crore to overcome liquidity crisis in the capital market.
The BMBA has urged to provide fund assistance on easy terms through the Capital Market Stabilization Fund (CMSF) for a period of 5-7 years.
The organization sent a letter to Bangladesh Securities and Exchange Commission (BSEC) yesterday in this regard. The BMBA president Sayedur Rahman told that listed banks and merchant banks are unable to invest much money in the capital market despite their desire due to limitation of investment segment by the regulator. “So, we are seeking a special fund of Tk 10,000 crore for the intermediaries. We hope that the Commission will give us this money by issuing bonds through the CMSF to support the market,” he added. BMBA stated in the letter the market had recently become volatile despite many initiatives by the BSEC. This has put a pressure on investors to sell their shares. Adequate cash assistance is needed to restore normalcy in the market in this situation, Sayedur said.
If the funds are properly invested by market intermediaries, the current problems will be solved and the market liquidity crisis will be alleviated, BMBA said in the letter.
In addition, information will spread among the stakeholders that the government is working with the regulatory body for market development in this initiative. This will increase confidence among investors and keep the market moving normally, BMBA president said.

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