Finance minister urges paperless, institution-based capital market.
Finance Minister Amir Khosru Mahmud Chowdhury today called for transforming Bangladesh's capital market into an institution-based, fully paperless and technology-driven market, stressing the need to turn the Investment Corporation of Bangladesh (ICB) into a competitive and professional institution.
He made the remarks as the chief guest at a programme marking the golden jubilee and anniversary of the ICB in the city, said a press release.
The Finance minister urged the ICB to move beyond its traditional approach and adopt a market-oriented, competitive and professional operating model to support the modernisation of the country's capital market and financial sector.
He said the ICB was established through an ordinance with the objective of promoting a free-market economy and developing a market-based capital market in Bangladesh.
The corporation was also expected to mobilise public savings for investment in the capital market and channel funds into the national economy, he added.
Bangladesh's capital market has long been heavily dependent on retail investors, the minister said, adding that institutional investors play the dominant role in capital markets worldwide.
He stressed that the ICB must play a leading role in transforming Bangladesh's retail investor-dependent market into an institution-based market.
As part of the economic reform agenda, appointments to senior positions in financial institutions, including the securities regulator, are being made without political interference, he said.
The government will not make appointments to banks or financial institutions on political considerations, the minister added.
He said work had begun to introduce full automation and digitalisation at every level of the capital market, including the securities regulator, stock exchanges, brokerage houses and the ICB.
Emphasising the principle of "No Paper Transaction, Nothing Paper," he said all activities relating to listing applications, permissions and decision-making must henceforth be completed online.
Referring to a recent breakfast meeting in New York involving the Prime Minister and senior executives of 15 leading global institutions with a combined network of around US$36 trillion, the minister said international investors had expressed confidence in Bangladesh's capital market and economic reforms.
He said initiatives were being taken to create an environment for bringing global capital into Bangladesh through private funds, climate financing and derivatives products.
The minister also urged domestic financial institutions to move beyond their dependence on traditional banking practices and become familiar with international standards and practices associated with global financial markets.
He expressed hope that the ICB would draw on its experience and internal restructuring to emerge as a modern, efficient institution meeting international standards.
The programme was chaired by ICB MD Niranjan Chandra Debnath.
BSEC Chairman Masud Khan, Finance Division Secretary Dr Md Khairuzzaman Majumder, Financial Institutions Division Secretary Nazma Mobarek and ICB Chairman Abu Ahmed, among others, attended the event.
