Bangladesh Bank named NRBC Bank as the best primary dealer, a press release said.
The central bank issued a letter on September 16 in which NRBC Bank was named Bangladesh’s best prime broker for its performance in the last quarter of October to December and the central bank paid Tk 5,35,420 as commission of subscription to NRBC Bank.
A prime trader is a bank or financial institution licensed to trade in treasury bills and national bonds.
The government collects money by selling Treasury Bills (T-Bills) and Bangladesh Government Treasury Bills (BGTB) issued in auctions.
Only primary dealers (PD) can submit bids during these auctions where the central bank acts as the representative of the government.
Out of 61 banks, only 20 banks currently operate as primary dealers.
NRBC Bank President SM Parvez Tamal said: “We are working in collaboration with government development activities as well as our general banking activities. The government takes loans from banks to meet liquidity needs for development work. NRBC Bank is required to provide loans to the government in accordance with the agreement with the government as PD Bank. The NRBC Bank also collects VAT, taxes and other income and various government service bills including BRTA, Palli Bidyut and land registration fees.
– New Age