The New Age : BB asks NBFIs to double capital by yearend
Bangladesh Bank on Wednesday asked the non-bank financial institutions to increase their capital base in ensuring financial security to face any crisis like the ongoing global recession.
The central bank also asked the NBFIs to bring down default loans at a tolerable level and increase investment in the housing and SME sectors, but suggested keeping in mind the environmental issue while considering investment in the housing sector.
Governor Atiur Rahman gave the instructions at a meeting with chief executive officers of the financial institutions at Bangladesh Bank.
‘Strengthening your capital base is urgent. I think the paid-up capital of Tk 25 crore of the financial institutions is not adequate,’ he told the chief executive officers, expressing concern over non-compliance of the minimum capital requirements by few of the NBFIs.
The BB governor asked the NBFIs to comply with the capital requirement as a preparation to comply with more stringent Basel-II.
BB deputy governor Nazrul Huda told reporters after the meeting that the paid-up capital of the NBFIs should be increased to Tk 50 crore by the end of this year.
Bangladesh Bank on Wednesday asked the non-bank financial institutions to increase their capital base in ensuring financial security to face any crisis like the ongoing global recession.
The central bank also asked the NBFIs to bring down default loans at a tolerable level and increase investment in the housing and SME sectors, but suggested keeping in mind the environmental issue while considering investment in the housing sector.
Governor Atiur Rahman gave the instructions at a meeting with chief executive officers of the financial institutions at Bangladesh Bank.
‘Strengthening your capital base is urgent. I think the paid-up capital of Tk 25 crore of the financial institutions is not adequate,’ he told the chief executive officers, expressing concern over non-compliance of the minimum capital requirements by few of the NBFIs.
The BB governor asked the NBFIs to comply with the capital requirement as a preparation to comply with more stringent Basel-II.
BB deputy governor Nazrul Huda told reporters after the meeting that the paid-up capital of the NBFIs should be increased to Tk 50 crore by the end of this year.
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