The auctions of the Latvian government securities
are held by the Nasdaq Riga stock exchange, while clearing is performed by the Latvian Central Depository of Securities.
Godwin Emefiele, CBN Governor, said banks' access to government securities
will be restricted, with policies and regulations for the policy shift being perfected.
But why are banks eager to invest in government securities
? Why can't they increase lending to the private sector?
On Tuesday, Equity Bank chief executive James Mwangi said that government securities
accounted for 54 per cent of the bank's loan book.
During July-January of current FY19, the collection of withholding tax from banking deposits soared 221% and counterbalanced the fall in tax collection from profit on government securities
22 notice to government securities
Speaking at the seminar on Government Securities
Development in Cambodia last Friday, Ministry of Economy and Finance, under secretary of state Ros Seilva, said the debt instrument has been discussed since 2000, but until now the government is still able to get concessional loans from other countries.
The last time the institutions held close to 55.7 per cent of government securities
was on October 13 last year when the proportion stood at 55.8 per cent.Data compiled by Business Daily showed that the banks also increased their earnings from government securities
to Sh29.176 billion as at the end of the first quarter of this year compared to Sh24.372 billion during similar period last year mdash S.
The non-competitive bidding facility was introduced by the Reserve Bank of India (RBI) to encourage retail participation in the primary market for Government Securities
. In continuation of this endeavor, the Union Budget 2016-17 had announced, inter-alia, that RBI will facilitate retail participation in the primary markets through stock exchanges.
The Government decided that the loan taken through the issue of government securities
at home in 2018 shouldn't exceed 5.4 billion denars.
NLB Pension Fund is still investing most of its funds--about 60 percent--in government securities
. On the other hand, the voluntary pension fund's investment in government securities
is 45-50 percent
The measure is designed to incentivise banks to replace cash reserves with government securities
and to redeploy the freed up cash by purchasing more government securities
and/or increasing private lending.