Bangladesh Bank (BB) Governor Md. Mostaqur Rahman has underscored the need to build a stronger and more dynamic capital market to support long-term economic growth, saying private sector credit and investment should gradually rise to 10 percent to sustain higher economic expansion.

The governor made the remarks during a meeting with a delegation from the Chittagong Stock Exchange PLC (CSE), led by its Chairman AKM Habibur Rahman, at the Bangladesh Bank headquarters on Monday, according to a BB press release.

He said a vibrant capital market is crucial to complement the banking sector by providing entrepreneurs with long-term equity financing. Such a market would reduce excessive dependence on bank borrowing while creating an alternative source of funds for private sector expansion.

To strengthen the market, Rahman outlined a phased roadmap to increase market capitalization, setting targets of Tk 20,000 crore in FY2026-27, Tk 25,000 crore in FY2027-28 and Tk 30,000 crore in FY2028-29.

He said achieving these targets would help transform the capital market into a major source of long-term financing for the private sector, easing pressure on banks and supporting sustainable economic growth.

The BB governor also highlighted recent regulatory reforms aimed at attracting foreign portfolio investment. He noted that Bangladesh Bank amended the rules governing Non-resident Investor’s Taka Accounts (NITA) through FEID Circular No. 02, issued on May 20, 2026, allowing proceeds from the sale of shares and securities to be credited directly to NITA accounts.

Under the revised framework, Authorized Dealer banks will deduct and deposit capital gains tax to the government treasury, a move expected to simplify and speed up the repatriation of funds by foreign investors.

The CSE delegation included Managing Director M. Saifur Rahman Mazumdar and General Managers Mortuza Alam and Mohammad Monirul Huq. Senior Bangladesh Bank officials were also present at the meeting.