As per previously taken plans by the government to rescue the ailing capital market, the banks will start investing in this sector today from their special funds. The investment would be made gradually by 54 banks which are now operating commercially. In the latest meeting between the finance minister and bankers on Monday, AHM Mustafa Kamal reportedly told the bankers that — though a policy was formulated to allow each bank to form a Tk 200 crore special fund for the stock market investment, in reality the necessity of immediate investment became imperative to avert continuous fall in share prices amidst fear of the coronavirus pandemic. The version of the finance minister gives us clarity about one thing — the capital market situation was never good at all, whether it was due to the coronavirus epidemic or not.
According to newspaper reports, Dhaka stocks crashed for the third consecutive day on Monday with the key index hitting a six-and-a-half-year low. The DSEX lost Tk 58,270 crore in market capitalisation in the last 20 days’ rout. Its key index DSEX plunged by 4.95 per cent, or 196.75 points, to close at 3,772.55 points on the day as the DSEX lost 458.91 points in the last three sessions. What’s most frustrating is that, the DSEX on Monday hit its lowest since October 21, 2013. Meanwhile, the banks would get an opportunity to borrow money at 5 per cent interest from the central bank to meet the government’s plan to feed the share market. And if 54 banks invest Tk 200 crore each then there will be a big fund of Tk 10,800 crore. We find the new plan a peculiar one as it is still not known whether finance ministry has taken any foolproof security measure to protect the fund. There remains a doubt that it would pave the way to the renowned looters to take away newly invested money, if protective measures are not taken.
Bangladesh Bank can’t allow the state-owned and private commercial banks to risk their funds in an insecure capital market. It is not anyone’s personal money. It’s people’s money. The central bank can’t avoid the responsibility.
