BB chief calls for stronger capital market to boost private investment
He says a vibrant capital market is essential to complement the banking sector by providing entrepreneurs with long-term equity financing.
Bangladesh Bank (BB) Governor Md Mostaqur Rahman today (29 June) stressed the importance of developing a stronger and more dynamic capital market to support Bangladesh's long-term economic growth, saying private sector credit and investment should gradually increase to 10% to sustain higher economic expansion.
The governor made the remarks during a meeting with a delegation of Chittagong Stock Exchange PLC (CSE), led by Chairman AKM Habibur Rahman, at the Bangladesh Bank headquarters, said a press release.
He said a vibrant capital market is essential to complement the banking sector by providing entrepreneurs with long-term equity financing, thereby reducing excessive reliance on bank borrowing and creating an alternative source of funds for private sector expansion.
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To strengthen the capital market, the governor outlined a phased roadmap to increase market capitalisation, setting targets of Tk20,000 crore in FY2026-27, Tk25,000 crore in FY2027-28 and Tk30,000 crore in FY2028-29.
He said achieving these targets would help transform the capital market into a major source of long-term financing for the private sector, easing pressure on banks while supporting sustainable economic growth.
The governor also highlighted recent regulatory reforms aimed at attracting foreign portfolio investment.
Bangladesh Bank revised the rules governing Non-resident Investors' Taka Accounts (NITA) through FEID Circular No. 02, issued on 20 May 2026, allowing proceeds from the sale of shares and securities to be credited directly to NITA accounts.
Under the revised framework, Authorised Dealer banks will deduct and deposit capital gains tax to the government treasury, simplifying and expediting fund repatriation for foreign investors.
