Savings certificates should be tradable in secondary market: BB governor
Mansur said a joint task force of the central bank and BSEC is working on bond market development and has submitted specific recommendations to the government.
Bangladesh Bank Governor Ahsan H Mansur has said that savings certificates should be made tradable in the secondary market.
Alongside savings certificates, bonds also need to be easily tradable and accessible to the public to make the market more vibrant, he said at a seminar today.
"Banks can provide loans for five to six years, but not beyond 10 years. Long-term assets should be financed through bonds. Even savings certificates need to be brought under secondary market trading," Mansur said.
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The seminar, titled "Unlocking Bangladesh's Bond and Sukuk Markets: Fiscal Space, Infrastructure Delivery and Islamic Money Market Development," was jointly organised by the Bangladesh Securities and Exchange Commission (BSEC) and Dhaka Stock Exchange (DSE) at the DSE Tower.
Mansur said a joint task force of the central bank and BSEC is working on bond market development and has submitted specific recommendations to the government.
Highlighting that $130 trillion worth of bonds have been issued globally, he suggested creating a separate market for buying and selling savings bonds.
While government bonds are already accessible to the public, private bonds should also be made tradable under a proper framework, which could double the bond market overnight, Mansur added.
Anisuzzaman Chowdhury, special assistant to the chief adviser, and Finance Adviser Salehuddin Ahmed also spoke at the seminar.
