Bangladesh Bank Governor Dr. Ahsan H. Mansur encouraged Micro Finance Institutions (MFIs) to focus on reducing urban poverty in addition to their efforts in rural areas.
The governor was speaking as the chief guest at a workshop on ‘Micro Finance in Bangladesh, June 2024’ organised by the Microcredit Regulatory Authority (MRA), at CIRDAP Auditorium in Dhaka on Tuesday, reports UNB.
The central bank chief said MFIs should be modernised and adopt digital services to compete with banks which are providing services in rural areas with tech-based agent bank outlets.
He mentioned that around 16, 000 agent bank outlets are operating in different areas of Bangladesh, and this number is growing rapidly. Banks’ agent outlets are well equipped and provide reliable services to their clients by digital system.
Nazma Mobarek, secretary of the Financial Institution Division of the finance ministry, was present in the event as the special guest. Executive Vice President of MRA Professor Mohammed Helal Uddin, presided over the programme.
Among panel discussants, Managing Director of PKSF Md. Fazlul Kader and Treasurer, Dhaka University Professor Mohammad Jahangir Alam also spoke in the event.
In a presentation, joint director of MRA Ranjit Kumar Sarkar highlighted that currently there are 26000 branches of 724 registered MFIs or NGOs across the country. They are providing collateral free micro credit among the marginal people in rural areas.
In the fiscal year 2023-24, the microfinance sector distributed Tk3 lakh crore as loans to customers and received deposits of Tk97000 crore from customers. Among this, the amount of loans distributed by MRA-certified microfinance institutions and accepted savings was Tk2.61 lakh crore and Tk68000 crore respectively, he pointed out.
Compared to the previous fiscal year 2022-23, the growth rate of loan flow in this sector in the FY 2023-24 was 5.26 percent and for MRA-certified microfinance institutions it was 4.81 percent.
Out of the total loan distributed in the FY 2023-24, Tk99000 crore was provided as micro-enterprise loans. The microfinance sector also has a huge contribution in the agricultural sector. In this fiscal year, the amount of loans provided to the agricultural sector was Tk1.30 lakh crore or about 50 percent of the loans distributed by MRA listed MFIs.
In addition to providing financial services across the country, microfinance institutions are doing important work including health, education, higher education scholarships and disaster management, it was told in the event.
Managing Directors of different MFIs, researchers and microcredit officials joined the event.
Bd-pratidin English/ Afia
