The Bangladesh Bank on Tuesday asked all the scheduled banks and non-bank financial institutions to open a separate window within three months to facilitate transaction of treasury bills and bonds.
The central bank initiative came at a time when the government has been borrowing heavily from the banking system against treasury bills and bonds to meet the budget deficit.
In the immediate past fiscal year 2019-2020, the government borrowed Tk 85,231 crore by issuing treasury bills and bonds through the banks, corporate and individuals.
For FY21, the government has planned to borrow Tk 84,980 crore from the banking sector, corporate and individuals against treasury bills and bonds.
In this context, the BB on the day issued a circular which said that the banks and financial institutions were now facilitating treasury bill transaction from their treasury division at their head offices besides maintaining their own securities portfolio from the same division.
With the rise in demand for treasury bills and bonds, it has become difficult for the division to serve the customers in transactions of treasury bills and bonds, prompting the central bank to issue the directive under which the banks were asked to set up a ‘Government Securities Investments Window’.
The function of the window would be to educate people on the procedure to invest in treasury bills and bonds, and its yield.
Besides, the desk would also facilitate account opening, yield payment and surrendering of bills and bonds.
Along with coordinating with the Bangladesh Bank’s trading platform, the banks and financial institutions were also asked to coordinate with other trading platforms like the Dhaka Stock Exchange.
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