Investment Corporation of Bangladesh (ICB) must adapt to the changing structure of the country’s capital market and transform itself into a market-oriented, competitive, efficient and professional institution, Finance Minister Amir Khosru Mahmud Chowdhury has said.

He also stressed the need to make ICB fully digital, saying that no institution can operate sustainably by relying solely on government support.

The finance minister made the remarks as the chief guest at a programme marking ICB’s 50th anniversary at Hotel Purbani in the capital on Thursday.

Amir Khosru said ICB was established with the objective of moving Bangladesh’s economy towards a market-based and free-market system and developing the capital market as one of its foundations. The institution was also intended to channel people’s savings into productive investment and contribute to the economy.

However, the structure of Bangladesh’s capital market has changed significantly over time, and ICB now needs to rethink its role, he said.

“Bangladesh’s capital market is largely dependent on retail investors, whereas capital markets globally are predominantly driven by institutional investors,” the minister said, adding that ICB has a significant opportunity to help transform the country’s retail-investor-driven market into one led by institutional investors.

Despite enjoying tax benefits, ICB must operate according to market principles, he said. The institution needs to move forward through efficiency, professionalism and competition rather than depending on government support.

The minister also said the government would not make political appointments in the financial sector, including ICB. The government is working to keep the financial sector free from political influence, he added.

Regarding capital market reforms, Amir Khosru said several reform initiatives and regulatory relaxations had been undertaken after the new commission assumed office. Efforts are also underway to simplify the direct listing process and further integrate Bangladesh’s capital market with global markets.

Referring to a recent breakfast meeting held on Wall Street in the United States, he said representatives of 15 major companies, with a combined value of around $36 trillion, participated in the meeting. Various financial products, including private funds, private financing and derivatives, were discussed there.

International investors are interested in Bangladesh, the minister said, adding that the country’s market must be prepared to accommodate them.

He stressed that institutions including ICB need to be modernised and made more competitive to attract and serve international investors.

Emphasising digitalisation, Amir Khosru said all ICB operations should be automated and there should be no paper-based transactions. Online decision-making, online listing and online listing applications should be introduced across the Securities and Exchange Commission, stock exchanges and relevant institutions, he said.

Financial Institutions Division Secretary Nazma Mobarek said investing without proper market analysis and borrowing funds at high interest rates for investment were among the major reasons behind ICB’s current difficulties.

She stressed the need for portfolio restructuring and improving management efficiency.

She said the Finance Division had provided ICB with Tk 4,000 crore in two phases. Of the first Tk 3,000 crore, Tk 2,000 crore was used to repay high-interest loans, while the remaining Tk 1,000 crore generated around Tk 176 crore in income through investment. A further Tk 1,000 crore later provided to ICB generated approximately Tk 143 crore in income, she added.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said several capable asset management companies had emerged over time and were now competing with ICB.

He said ICB needed to become more professional in portfolio management and emphasised investment rebalancing based on market needs, transparent reporting and compliance with international financial reporting standards.

Financial Institutions Division Secretary Nazma Mobarek, Finance Division Secretary Dr Md Khairuzzaman Majumder, BSEC Chairman Masud Khan, ICB Chairman Abu Ahmed and other senior officials attended the programme.

ICB Managing Director Niranjan Chandra Debnath chaired the event.