BB moves to rigging up batch market Banks get 4 some-more months to regulate exposure

The executive bank has lengthened time for banks to trim down their bearing boundary in 4 months to Dec from Aug 2011 as partial of an bid for stabilizing a share market, disorder from a worst-ever shocks.

On Thursday, a executive bank Thursday expelled a round to surprise all a banks of a decision.

As per a circular, blurb banks with businessman promissory note or brokerage operations would right away have to move down their single-borrower-exposure extent to fifteen percent of their paid-up collateral by December.

“The executive bank has lengthened a timeframe for readjusting overexposure of businessman banks, that is a crafty summary to recover investors sagging confidence,” pronounced a single of a sources.

Fifteen percent single-exposure-limit equates to if a bank’s paid-up collateral is Tk 200 crore, it cannot lend some-more than Tk thirty crore to a businessman bank or brokerage residence as per a BB rule.

Many businessman banks have outrageous amounts of exposures to a collateral market. And if they right away wish to move down a bearing to a BB-set ceiling, afterwards they have to sell shares of their clients to giveaway a income for their mom companies (banks).

Many institutions were confronting a vigour of offered (forced sale) shares of their clients. Like banks, non-banks have been additionally confronting a same problem.

Following a Bangladesh Bank directive, a tiny investors said, businessman banks would right away get enough time to regulate their overexposure as great as it would assistance revitalise investors’ certainty as great as their investment capital.

 

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