Banks can now show share’s cost price as exposure limit

Banks can now show their highest limit of capital market exposure on the basis of the stock like instruments' purchasing price of instead of their market value.

The stock market intermediaries have long been demanding it and Bangladesh Bank has extended the facility after getting recommendation from the finance ministry.

Today, the central bank issued a circular saying the purchasing price of shares of other companies, mutual funds, debentures and corporate bond would be considered during the counting of the highest exposure limit of banks.

Earlier, the finance ministry through a letter urged the Bangladesh Bank governor to allow the cost price of share purchase as their exposure limit.