The Asian Development Bank (ADB) has agreed to provide 3 million U.S. dollars to Bangladesh to improve its governance practices in the capital market and insurance sector.

A loan agreement was signed here Wednesday by Aminul Islam Bhuiyan, secretary of the Economic Relations Division (ERD) under the Bangladeshi finance ministry, and Du Hua, country representative of ADB on behalf of their respective sides, a pressrelease from ADB said.

The project will strengthen the governance, regulation and supervision of the capital market and boost the regulators' capacity. It will also support government-led reforms being pursued in the insurance sector, including a revamp of the insurance legislation and the establishment of a new regulatory authority based on international best practices.

"The assistance will help improve governance and reinforce investor's confidence in Bangladesh's financial markets," Du Hua said at the signing ceremony.

"With better governance and greater investor participation, activities in the capital market and the insurance sector should be revived, and will play a more significant role in mobilizing long-term funds for infrastructure and industry, and for spurring economic growth," she added.

ADB, based in Manila, capital of the Philippines, is dedicated to reducing poverty in the Asia-Pacific region through pro-poor sustainable economic growth, social development and good governance.

Established in 1966, it is owned by 67 members out of which 48 from the region.

Source:Xinhua