Finance Minister AMA Muhith has rejected Orion Group Chairman Obadul Karim’s proposal to raise the limit of stock market exposure for commercial banks along with any contract with the company on the basis of its stocks. In his letter, he said if the provisions are amended, there will be a negative impact on the country’s stock market. The banks’ share market exposure limit is 25% of its capital under the provision 25 (B) of the Bank Companies Act 1991. But the Bangladesh Bank gives exemption of bank exposure if the government provides loan or guarantee to the bank for investing in the stock market, according to the law. Earlier in December 2015, the banks’ capital given to their stock market subsidiaries were kept out of their stock market exposure.

Source: Dhaka Tribune March 05, 2017 17:24 UTC