Premier Bank and EXIM Bank were fined Tk 50,000 apiece by the Bangladesh Bank on Thursday for violating the guidelines for investing in the stock market from the special stock market fund.
On the same day, the central bank issued warnings to four banks: Eastern Bank, Global Islami Bank, Union Bank, and Agrani Bank.
The BB previously penalized NRB Bank and NRB Commercial Bank for exceeding their investment limits in a particular stock, in breach of the Bank Company Act 2013.
Bangladesh Bank imposed Tk 4.95 million and Tk 2.35 million fine on NRB Bank and NRB Commercial Bank, respectively.
The latest BB action is part of the central bank’s effort to rein down banks’ excessive capital market exposure and participation in the country’s recent strong stock market trend.
In February 2020, the central bank permitted scheduled banks to create a special fund of Tk 200 crore each to participate in the capital market by borrowing money from the central bank on favorable terms to help the market recover.