Electronic transactions of treasury bills begin
System connects BB with 31 banks, financial institutions
Star Business Report
Electronic transactions of treasury bills and other government securities through central depository system began yesterday.Transactions under the new system that connected Bangladesh Bank with 31 commercial banks and financial institutions will be conducted by Central Depository Bangladesh Limited (CDBL). Bangladesh Bank (BB) Governor Fakhruddin Ahmed inaugurated the electronic registration system at the bank's head office in Dhaka. BB Deputy Governor Nazrul Huda, CDBL Chairman Samson H Chowdhury, Managing Director MA Samad and high officials of central bank and CDBL were present. The central bank opted for the electronic registry for treasury bills to foster development of a secondary market for T-bills. Transactions in the full-fledged secondary market will start through CDBL after appointment of primary dealers from intending banks and financial institutions, sources said. Launching the system, the BB governor said transactions of government securities in the secondary market will now be easier and speedier than before. "Introduction of the electronic system will help in eliminating the need to issue and keep track of paper certificates in transaction process," he said. It will also help in making electronic transfers of ownership arising from secondary market transactions and eliminating the need to present certificates upon maturity. Under the electronic transaction system, general investors will also be able to participate in trading of government bonds. Experts say such inclusion of the general investors in the bond market will facilitate investors with wide variety of options to invest their savings and funds. People will be able to transact treasury bills and government securities through primary dealers by using their pension funds, said a central bank official. He said besides electronic transaction, manual system will also remain in use for transaction. Using the system the central bank can witness transactions of all banks. "However, commercial banks will not be allowed to see other banks' transactions. A bank can only see its own transaction," the central bank official added. Speaking at the launching, the CDBL chairman said electronic transactions in capital market will start next month.
| 
