Finance Minister Amir Khosru Mahmud Chowdhury on Thursday stressed the need for transforming Bangladesh’s capital market into an institutional-based and fully paperless market, with the Investment Corporation of Bangladesh (ICB) becoming a market-driven, competitive and professional institution.
“ICB has to play a role in transforming Bangladesh’s capital market from a retail-based market into an institutional-based market,” he said while addressing an event marking the golden jubilee and anniversary of ICB.
The finance minister said ICB was established through an ordinance with the objective of developing a free-market economy and a market-based capital market in Bangladesh.
He said the corporation was also intended to channel people’s savings into the capital market and facilitate greater investment in the national economy.
Khosru said Bangladesh’s capital market had long remained heavily dependent on retail investors, whereas capital markets globally are primarily driven by institutional investors.
He urged ICB to move away from its traditional approach and become a fully market-oriented, competitive and professional organisation.
The minister said appointments to senior positions in the Securities and Exchange Commission and other financial-sector institutions are being made without political influence as part of the government’s economic reform programme.
“No appointments will be made to any bank or financial institution on political considerations,” he said, stressing the government’s policy of keeping such appointments free from political influence.
Khosru said work has begun to ensure full automation and digitalisation at every level of the capital market, including the securities regulator, stock exchanges, brokerage houses and ICB.
Recalling the government’s “No Paper Transaction, Nothing Paper” policy, he said all activities relating to listing applications, permissions and decision-making must now be completed online.
Referring to a recent breakfast meeting in New York between Prime Minister Tarique Rahman and senior executives of 15 major global institutions with a combined network of around $36 trillion, the finance minister said international investors had expressed confidence in Bangladesh’s capital market and economic reforms.
He said an environment is being created to bring global capital into Bangladesh through private funds, climate financing and derivative products.
Khosru also urged domestic institutions to move beyond dependence on conventional high-street banks and become accustomed to international practices in line with global financial markets.
He expressed hope that ICB would use its past experience and internal restructuring to emerge as a modern, internationally standard and efficient institution.
ICB Chairman Abul Ahmed, Bangladesh Securities and Exchange Commission Chairman Masud Khan, Finance Division Secretary Dr Md Khairuzzaman Majumder and Financial Institutions Division Secretary Nazma Mubarek attended the programme, chaired by Niranjan Chandra Debnath.