DBA seeks raising limit to Tk300cr for banks, five-year extension

The DSE Brokers Association of Bangladesh (DBA) has urged Bangladesh Bank to increase the limit of its special fund facility for the capital market from Tk200 crore to Tk300 crore for each scheduled bank to address the ongoing liquidity crisis and boost institutional investment.
The DBA also proposed extending the facility for another five years until 30 November 2031.
DBA President Saiful Islam made the proposals in a formal letter submitted to Bangladesh Bank Governor Mostaqur Rahman, FCMA, on Wednesday. A copy was also sent to Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan.
The DBA said the special fund facility, introduced by Bangladesh Bank to support investment in and development of the capital market, has helped enhance institutional investment capacity, maintain market liquidity and stability, and strengthen investor confidence.
Each scheduled bank can currently form a special fund of up to Tk200 crore, but the facility is due to expire on 30 November this year.
Given the capital market’s liquidity crisis and global uncertainty stemming from ongoing tensions in the Middle East, the facility should not be withdrawn but strengthened further, the DBA said.
It proposed increasing the fund limit to Tk300 crore per bank and extending the facility from 1 December 2026 to 30 November 2031.
The DBA said the measures would boost institutional investment, improve market liquidity and depth, restore investor confidence and support the long-term, sustainable development of the capital market.
It urged Bangladesh Bank to take the necessary steps, considering the current market situation and broader economic interests, and reaffirmed its commitment to cooperating with the central bank and other regulators in implementing the government’s capital market development plans.