BB Guards Money Market, Not Capital Market: Official
Wednesday, 29 July 2009

A central bank official assured representatives of the country's twin bourses and the capital market regulator on Tuesday that it is working for a transparent, vibrant and buoyant economy.

"As the money market's guardian, the central bank monitors the activities of banks and financial institutions, it will never hamper the capital market," Bangladesh Bank deputy governor Murshid Kuli Khan told a delegation from the Dhaka and Chittagong stock exchanges and the Securities and Exchange Commission.

"The Bangladesh Bank has no business knowing the content of an individual's portfolio," Khan told the delegation at the BB's head office.

He said the central bank's job is to keep an eye on the money market, while the SEC has oversight on the capital market.

Khan also said the banking regulator had not mounted an investigation into the activities of any bank

"The central bank is not investigating investments in the market made by any bank," he said.

"Rumours are the cause of any fall in the market now."

DSE president Rakibur Rahman echoed the BB official, saying the drop in turnover and indices had occurred without any apparent cause.

"It is not true that panic shook the market over the BB directive for submission of monthly stock portfolio reports of all banks," said Rahman, contrary to a previous statement on the matter.

On July 15, Rahman blamed market intervention by the central bank for the stock market's downturn—an allegation the bank refuted.

Rahman had said the bank's new directive would stymie the market's growth.


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