Merchant banks get more time for loss provisioning
The securities regulator has extended the timeframe by two years to complete provisioning of the unrealised losses in the portfolios of merchant banks and their clients.
The Bangladesh Securities and Exchange Commission (BSEC) extended the timeframe following a request by Bangladesh Merchant Bankers Association (BMBA).
The existing timeframe in this regard is scheduled to end on December 31, 2018. Previously, the BSEC extended the timeframe for five times.
Mohammad Saifur Rahman, a BSEC executive director, said the regulator extended the timeframe considering the situation of the merchant banks.
He explained that many of the merchant banks are yet to come out of the woes of 2010-11 stock market debacles. The regulator also considered the market situation, he added.
Presently, there are 60 merchant banks operating in the country's capital market.