Bangladesh Bank (BB) Governor Md. Mostaqur Rahman today underscored the importance of developing a stronger and more dynamic capital market to support Bangladesh's long-term economic growth. He stated that private sector credit and investment should gradually increase to 10 percent to sustain higher economic expansion.
Meeting with Chittagong Stock Exchange
The Governor made these remarks during a meeting with a delegation of Chittagong Stock Exchange PLC (CSE), led by Chairman AKM Habibur Rahman, at the Bangladesh Bank headquarters. The meeting was covered in a press release.
Roadmap for Market Capitalization
To strengthen the capital market, the Governor outlined a phased roadmap to increase market capitalization. The targets set are Taka 20,000 crore in FY2026-27, Taka 25,000 crore in FY2027-28, and Taka 30,000 crore in FY2028-29. Achieving these targets is expected to transform the capital market into a major source of long-term financing for the private sector.
Reducing Reliance on Bank Borrowing
The Governor highlighted that a vibrant capital market is essential to complement the banking sector by providing entrepreneurs with long-term equity financing. This would reduce excessive reliance on bank borrowing and create an alternative source of funds for private sector expansion.
Regulatory Reforms for Foreign Investment
He also mentioned recent regulatory reforms aimed at attracting foreign portfolio investment. Bangladesh Bank revised the rules governing Non-resident Investor's Taka Accounts (NITA) through FEID Circular No. 02, issued on May 20, 2026. This allows proceeds from the sale of shares and securities to be credited directly to NITA accounts.
Simplifying Fund Repatriation
Under the revised framework, Authorized Dealer banks will deduct and deposit capital gains tax to the government treasury, simplifying and expediting fund repatriation for foreign investors.
Delegation and Officials Present
The CSE delegation included Managing Director (MD) M. Saifur Rahman Mazumdar and General Managers Mortuza Alam and Mohammad Monirul Huq. Senior Bangladesh Bank officials also attended the meeting.
