Bangladesh Bank (BB) has extended the tenure of banks' capital market special funds until 31 December 2026.
The central bank has extended the tenure considering the current capital market situation and aiming to ensure overall stability of the financial sector, said a BB circular issued today.
Additionally, BB instructed the banks that formed the special funds and invested in the stock market to gradually reduce their investments within the extended period.
The special fund, aimed at enhancing liquidity in the capital market, was introduced in 2020 during the pandemic, allowing each bank to create a Tk200 crore fund with a five-year tenure. The tenure of the fund expired in February this year.
The circular said within the extended tenure, a specific action plan approved by the board of directors of the respective investor bank must be submitted to Bangladesh Bank within 30 days of the issuance of the circular, to gradually reduce the investment balance in the special fund.
BB extends banks' capital market special fund tenure until Dec 2026
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The central bank has extended the tenure considering the current capital market situation and aiming to ensure overall stability of the financial sector
BSS
Publisted at 9:40 PM, Tue Apr 8th, 2025
