Bangladesh Bank has stretched the deadline for its special fund set up to support stock market investments by banks, pushing the fund's validity until Dec 31, 2026. This initiative was introduced in February 2020 with a five-year term to encourage long-term investment in the capital market. The fund was primarily established as part of a long-term plan to stabilise the stock market by offering banks special liquidity and policy support. According to the Bank Companies Act, banks can invest up to 25 per cent of their regulatory capital in the stock market. This includes investments in shares, debentures, corporate bonds, mutual fund units, and other securities traded on the stock exchange.
