UNB, Dhaka :
UK aid on Sunday launched a £ 22.5 million “Business Finance for Poor in Bangladesh (BFP-B)” project to help banks and non-bank financial institutions (NBFIs) to easily reach the micro and small enterprises in rural areas.
The credit fund is equivalent to about Tk 266.77 crore which will be allocated to banks and NBFIs as grants to promote new business lending to poor rural entrepreneurs.
Formally launching the project at a function at Westin Hotel in the capital, Bangladesh Bank Governor Dr Atiur Rahman said the BFP-B will play a key role in nourishing the micro and small enterprises to enhance their productivity and contribute to the economy to create a comprehensive growth base.
“The BFP-B programme will help financial inclusion expand substantially in Bangladesh,” he told the function, attended by officials of commercial banks, NBFIs and NGOs.
The central bank boss hoped the project will also help frame a policy and regulatory environment towards development of micro, small and medium enterprises (MSME).
The function was also addressed, among others, by Banking Division secretary Dr M Aslam Alam, Bangladeshg Bank deputy governor S K Sur Chowdhury, DFID Bangladesh country representative Sarah Cooke and
Nathan Associates team leader David Munro.
Appreciating the British government’s initiative to support the financial inclusiveness for the poor entrepreneurs, Dr Atiur said Bangladesh has already secured second position in financial inclusion in South Asian countries.
“Bangladesh is far ahead of its neighbours in financial inclusion movement. In global financial inclusion index of the World Bank, it ranks ‘second’ in South Asia,” he added.
The Bangladesh Bank governor thanked the participating institutions for their driving thrust for mainstreaming the poor and the women in the financial inclusion initiatives.
Referring to his winning of ‘Central Banker of the Year, Asia Pacific-2015’ award from the Financial Times-owned magazine The Banker, he said this is in recognition of the collective efforts to promote financial inclusion and socially responsible financing for sustainable growth.
Dr Atiur said that until November 2014, a total 14.72 million 10 taka accounts have been opened while farmers’ 10 taka account stands at 9.72 million. As of December 2014 around 8.5 lakh school banking accounts have been opened with outstanding savings of Tk 717.49 crore, he added.
The Bangladesh Bank governor said it is inspiring that 834 street children have already opened bank accounts by September 2014 and their outstanding balance amounted to Tk 7.4 lakh.
About mobile financial services, he said BB has permitted 28 banks by December 2014 and already 25.18 million mobile bank accounts have been opened creating employment of about 5,41,000 agents across the country.
Dr Atiur said Bangladesh’s financial institutions are continuously surpassing its self-determined annual target for MSME lending since its inception in 2010.
During the last five years, he said, all banks and NBFIs financed Tk 3,344 billion towards 2.2 million MSMEs. Of them Tk 121 billion were financed towards 109,933 women led SMEs. More than 300,000 new entrepreneurs were financed over the last five years.
Dr Atiur said the MSME sector has successfully created employment for more than 1.5 million people in the last five years.
UK aid on Sunday launched a £ 22.5 million “Business Finance for Poor in Bangladesh (BFP-B)” project to help banks and non-bank financial institutions (NBFIs) to easily reach the micro and small enterprises in rural areas.
The credit fund is equivalent to about Tk 266.77 crore which will be allocated to banks and NBFIs as grants to promote new business lending to poor rural entrepreneurs.
Formally launching the project at a function at Westin Hotel in the capital, Bangladesh Bank Governor Dr Atiur Rahman said the BFP-B will play a key role in nourishing the micro and small enterprises to enhance their productivity and contribute to the economy to create a comprehensive growth base.
“The BFP-B programme will help financial inclusion expand substantially in Bangladesh,” he told the function, attended by officials of commercial banks, NBFIs and NGOs.
The central bank boss hoped the project will also help frame a policy and regulatory environment towards development of micro, small and medium enterprises (MSME).
The function was also addressed, among others, by Banking Division secretary Dr M Aslam Alam, Bangladeshg Bank deputy governor S K Sur Chowdhury, DFID Bangladesh country representative Sarah Cooke and
Nathan Associates team leader David Munro.
Appreciating the British government’s initiative to support the financial inclusiveness for the poor entrepreneurs, Dr Atiur said Bangladesh has already secured second position in financial inclusion in South Asian countries.
“Bangladesh is far ahead of its neighbours in financial inclusion movement. In global financial inclusion index of the World Bank, it ranks ‘second’ in South Asia,” he added.
The Bangladesh Bank governor thanked the participating institutions for their driving thrust for mainstreaming the poor and the women in the financial inclusion initiatives.
Referring to his winning of ‘Central Banker of the Year, Asia Pacific-2015’ award from the Financial Times-owned magazine The Banker, he said this is in recognition of the collective efforts to promote financial inclusion and socially responsible financing for sustainable growth.
Dr Atiur said that until November 2014, a total 14.72 million 10 taka accounts have been opened while farmers’ 10 taka account stands at 9.72 million. As of December 2014 around 8.5 lakh school banking accounts have been opened with outstanding savings of Tk 717.49 crore, he added.
The Bangladesh Bank governor said it is inspiring that 834 street children have already opened bank accounts by September 2014 and their outstanding balance amounted to Tk 7.4 lakh.
About mobile financial services, he said BB has permitted 28 banks by December 2014 and already 25.18 million mobile bank accounts have been opened creating employment of about 5,41,000 agents across the country.
Dr Atiur said Bangladesh’s financial institutions are continuously surpassing its self-determined annual target for MSME lending since its inception in 2010.
During the last five years, he said, all banks and NBFIs financed Tk 3,344 billion towards 2.2 million MSMEs. Of them Tk 121 billion were financed towards 109,933 women led SMEs. More than 300,000 new entrepreneurs were financed over the last five years.
Dr Atiur said the MSME sector has successfully created employment for more than 1.5 million people in the last five years.
