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Investment in Government Securities by State-owned Commercial Banks

Author

Listed:
  • Subrata Deb Nath
  • Munna Rani Biswas
  • Md. Habib Ullah Siddique

Abstract

The purpose of the study is to review the treasury functions of the SCOBs, to assess the amount of investment in government securities by the SOCBs and to find out the amount of loss incurred due to excess investment in government securities. The study found that Treasury Department of the various SOCBs is involved in CRR & SLR management, Currency Management, ALM and investment. Moreover, excess SLR of SOCBs was gradually increased in 2015 and 2016 with some exceptions. In addition, COF was between 6.95% to 11.87% in the period of 2014 to 2016 and WAIR of investment was drastically fall in 2015 and 2016. Consequently SOCBs incurred huge loss in 2015 and 2016. The implication of the study is that SOCBs can use the findings to take necessary actions regarding excess investment in government securities. Moreover, this study is a unique one in Bangladesh perspective, because a number research conducted on the investment in govt. securities or security market related topic but ”Investment in Government Securities by State-owned Commercial Bank” is new and unique. In addition, academician can use the results of the study for further research and policy makers and regulators can use it to take quick decision.

Suggested Citation

  • Subrata Deb Nath & Munna Rani Biswas & Md. Habib Ullah Siddique, 2019. "Investment in Government Securities by State-owned Commercial Banks," International Journal of Science and Business, IJSAB International, vol. 3(1), pages 260-273.
    • Handle: RePEc:aif:journl:v:3:y:2019:i:1:p:260-273
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    References listed on IDEAS

    as
    1. Mr. Jochen R. Andritzky, 2012. "Government Bonds and their Investors: What Are the Facts and Do they Matter?," IMF Working Papers 2012/158, International Monetary Fund.
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