Comprehensive framework to develop bond market drafted

FT ONLINE

A comprehensive framework to develop the country’s bond market has been drafted by a designated working committee.

Titled as ‘Comprehensive framework on the development of the bond market in Bangladesh’ the draft report has also been made available to the public on Monday.

The government assigned a nine-member working committee, headed by Md. Khurshid Alam, general manager of the debt management department of Bangladesh Bank earlier submitted the report to the governor of Bangladesh Bank.

The 45-page report reviewed the current status of the bond market, pointed out the barriers to developing a vibrant bond market and spelled out a number of recommendations to make the market effective and functional.

To address the challenges and barriers for the development of the country’s debt securities market and to implement the recommendations mentioned in the framework, the working committee has proposed to ‘promote inter-organizational cooperation among different primary regulatory bodies.’

The primary regulators include the Ministry of Finance (MoF), Bangladesh Bank (BB), National Board of Revenue (NBR), Bangladesh Securities and Exchange Commission (BSEC) and Insurance Development and Regulatory Authority (IDRA).

“To monitor the development of the long-term bond market development, a standing committee could also be formed comprising the members from different regulatory bodies,” concluded the framework report.