Banks' stock investment rises with spike in margin loan

Banks' stock investment rises with spike in margin loan

Banks' lending to the stock market increased substantially in the April-June quarter of this year amid rising private sector credit growth. Growing demand from individual investors for margin loans to invest in stocks has prompted banks to lend to their subsidiary investment banks, say industry insiders. The total loan to shares and securities rose by 17.37% or Tk1,200 crore to Tk8,140 crore quarter-on-quarter in just three months – the highest amount of lending to the stock market by banks in …