The Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) has urged the government to force the merchant banks and brokerage houses to reinvest profits made from the share market in the market.
"A total of 27 banks and 14 financial organisations have made an estimated Tk 60 billion profit. It is necessary to take steps to return this large amount of profit to the market," FBCCI president A K Azad told a press conference in the city on Sunday.
He read out a written statement at the press conference on 'Bank, Bank Interest, Liquidity Crisis and Share Market Situation'.
Azad urged the finance minister and the Bangladesh Bank governor to sit with the merchant banks and financial organisations concerned immediately to settle the issue.
He blamed the central bank and the Securities and Exchange Commission (SEC) for the recent stocks debacle.
"The Bangladesh Bank warned the banks and financial organisations to conduct transactions within limit in April last year. The market would not have been overvalued if the warning came when the index touched 6500 points.
"The Bangladesh Bank and the SEC didn't take steps when the price index started rising from July to September," he said
"At last they forced the banks to sell shares in December. It brought a large amount of profits to the banks but caused fall in the market," Azad added.
He also urged the government to take steps to settle issues like liquidity crisis and high interest rates of bank loans.
"Since the government has withdrawn the ceiling on the interest rates of bank loans, the banks are collecting interest up to 18 percent. The crisis has become more acute now. Local and foreign investors are getting discouraged. The entire economy will come to a stand still if the situation does not look up," he said.
The FBCCI president placed a six-point demand, including reduction of difference between bank interest rates on deposits and loans to three percent, stabilising the value of Taka and cleansing of Artha Rin Adalat (money loan court).
He suggested keeping two representatives of businessmen at the SEC and bringing the state-owned and multinational companies to the share market to reinvigorate it.
First FBCCI vice-president Mohammad Jasimuddin, vice president Mostafa Azad Chowdhury and directors were also present at the press conference.
"A total of 27 banks and 14 financial organisations have made an estimated Tk 60 billion profit. It is necessary to take steps to return this large amount of profit to the market," FBCCI president A K Azad told a press conference in the city on Sunday.
He read out a written statement at the press conference on 'Bank, Bank Interest, Liquidity Crisis and Share Market Situation'.
Azad urged the finance minister and the Bangladesh Bank governor to sit with the merchant banks and financial organisations concerned immediately to settle the issue.
He blamed the central bank and the Securities and Exchange Commission (SEC) for the recent stocks debacle.
"The Bangladesh Bank warned the banks and financial organisations to conduct transactions within limit in April last year. The market would not have been overvalued if the warning came when the index touched 6500 points.
"The Bangladesh Bank and the SEC didn't take steps when the price index started rising from July to September," he said
"At last they forced the banks to sell shares in December. It brought a large amount of profits to the banks but caused fall in the market," Azad added.
He also urged the government to take steps to settle issues like liquidity crisis and high interest rates of bank loans.
"Since the government has withdrawn the ceiling on the interest rates of bank loans, the banks are collecting interest up to 18 percent. The crisis has become more acute now. Local and foreign investors are getting discouraged. The entire economy will come to a stand still if the situation does not look up," he said.
The FBCCI president placed a six-point demand, including reduction of difference between bank interest rates on deposits and loans to three percent, stabilising the value of Taka and cleansing of Artha Rin Adalat (money loan court).
He suggested keeping two representatives of businessmen at the SEC and bringing the state-owned and multinational companies to the share market to reinvigorate it.
First FBCCI vice-president Mohammad Jasimuddin, vice president Mostafa Azad Chowdhury and directors were also present at the press conference.