The Issuer:

The Government of the Peoples republic of Bangladesh as one of the source of its deficit financing issues Treasury Bill & Treasury Bond of different tenor for the purpose of safe and gainful investment of the fund by the individuals, institutions both resident and non-resident in Bangladesh.

Who can Buy:

Asset Liability Management (ALM) is an integral part of Bank Management.  The responsibility of Asset Liability Management primarily lies with Treasury Division (Treasury Front Office) of the bank who co-ordinates balance sheet (asset liability) risk management. However, Bank must have a committee comprising of the senior management of the Bank to make important decisions related to the Balance sheet of the Bank. This team of senior management is typically called the Asset Liability Management Committee (ALCO).

The function of fixed income securities desk is to buy/sell government securities in both primary and secondary market. The basic responsibility of the desk is to participate in the Primary Auction of Government Treasury Bills and Treasury Bonds, enhancing market making capabilities for government securities amongst the market participants and ensuring deficit financing for Government’s Budgetary expenditure.

The functions of Foreign exchange dealing are highly specialized and complex in nature. The activities are therefore, been singled out for intense management attention. During the last couple of years, financial markets have undergone numerous changes with introduction of several exotic products and innovations by way of a range of new dealing platforms of service providers and counterparties as well. With shrinking margin elsewhere foreign exchange dealing operation has emerged as a major source of earning for banks, worldwide.

The word money market is a general term for the markets in which banks/FIs lend and borrow money or money equivalent from each other like call money, term placement, commercial papers or similar instruments or enter into agreement such as Repo and Reverse Repo for managing day to day liquidity as well as profit making. This market normally trades in maturities up to one year. It provides short to medium term liquidity. Essentially this market is for short -term financial assets that are close substitutes for money.

The function of Treasury is to optimize liquidity as well as capital of the Bank while administering the financial assets. Treasury is also responsible for making sound financial investments with the available fund while reducing financial risks by being responsible for measuring and monitoring all risks associated with the Bank’s domestic and Foreign Exchange exposure, local and foreign currency liquidity, asset liability management and overall management of the Balance Sheet.

• Loan Limit: Maximum loan limit is BDT 2 Crore.
• Tenure: Maximum 15 years including moratorium period subject to fulfillment of age Limit.
• Moratorium Period: 15 months. 
• Processing Fee: Nil.