More banks, insurance cos to get govt nod
— June 30, 2011
Staff Correspondent: The government will invite applications for setting up new private commercial banks and life insurance companies next month, finance minister Abul Maal Abdul Muhith said on Wednesday.
Muhith, while discussing on a cut motion by independent lawmaker Fazlul Azim, informed parliament that the new banks and insurance companies would help increase liquidity in the money market.
Azim criticised the finance minister for his handling of the share market issue and said that there was liquidity crisis in the country while the banks were charging exorbitant interest.
‘When the general index [price index of bourses] went up, the finance minister took the credit. But when the index fell, he claimed the market was a ‘fatkabzaar’,’ said Azim adding that the minister should take steps to increase liquidity supply in the share market.
In reply, Muhith claimed that there was no liquidity crisis in the country and there was no relation between liquidity crisis and the stock market debacle.
‘The share market is now stable. We did not have any negligence towards the stock market. Our only lapse was that we could not check the over pricing of shares. There is nothing to be worried as the market has been stable for the last two months,’ he said.
‘We will invite applications for new commercial banks next month. Applications for new life insurance companies will also invited,’ said the minister.
At present there are 49 commercial, specialised and multinational banks in the country. Of the total, 31 banks are listed with the Dhaka Stock Exchange.
The number of insurance companies in the country is 62, of which 18 are life insurance companies.