The Bangladesh Bank (BB) has undertaken a new policy to stimulate the bonds market.

At a tri-monthly coordination meeting, the BB on Monday urged the Insurance Development Regulatory Authority (IDRA) to enhance their investment in the government securities.

A regulatory guideline for life insurance companies to investment 30 percent of their paid-up capital in the government securities was suggested so that the banks can sell out their bonds for raising liquidity position.

BB governor presided over the meeting, while representatives from the Securities and Exchange Commission (SEC), IDRA, Department of Cooperatives, Micro-Credit Regulatory Authority (MCRA) and Registrar of Joint Stock Companies and Firms, deputy governors of the BB Najnin Sultana and SK Sur Chowdhury were present.

Emerging from the meeting, SK Sur Chowdhury said the meeting discussed the ways to develop the bond market, enhance liquidity of banks and ensuring stability in the capital market.

He said a strong bond market would play an important role in developing the country’s capital market.

The BB also urged the stakeholders of the coordination committee to keep close coordination with the BB to avoid baseless rumours for the overall development of the economy.

The Daily Sun/Bangladesh/ 28th Feb 2012