Bangladesh Bank (BB) will take necessary steps to restore stability in the stock market.

BB will take stock market friendly initiates on adjusting over exposure of banks and financial institutions as the call money market has already been stabilised through immediate steps taken by the central bank, BB governor Atiur Rahman said.

Atiur told this at a meeting with SEC member Yasin Ali to discuss on how to overcome the restless situation of the stock market.

At the meeting, the policy makers expressed deep concern over instability in stock market due to liquidity crises.

Recently the BB asked the SEC to take necessary steps to help stabilise stock market and following that the SEC high official met the central bank chief.

“BB will not take any decision to bring down the over exposure of banks and financial institutions, which might bring negative impacts to the stock market,” said Atiur.

He also said BB will cooperate SEC in developing a sustainable stock market to bring confidence of the investors.

Source: Daily Sun/ BAngladesh/ Jan-05-2011