Economic Reporter :
Speakers at a seminar have said that millions of small and medium enterprises (SMEs), cottage and micro sector businesses that have remained out of formal banking channel need a big push with proper backing from larger financial institutions.
They said introduction of smart cards like bank debit cards with financial facilities could be an option to begin with.
The seminar titled ‘Uttaron-In Promoting Sustainable & Inclusive Finance for SME & Farmer and Discussion on SME Card’ was held on Sunday at the office of the United Nations Industrial Development Organisation (UNIDO).
Khondkar Morshed Millat, General Manager of the Sustainable Finance Department of the Bangladesh Bank, said the central bank has a favourable policy to bring the SMEs and cottage and micro industries under a greater financial inclusion scheme.
He said since the SMEs and small industries are playing a vital role any effort to bring them under an integrated approach will get support from the central bank that regulates the banking sector. “But things have to be in place under the existing policy and in conformity with banking rules and regulations.”
Millat said they are ready to discuss possibilities to extend their support to the ambition of bringing the vital cottage and micro businesses under a greater financial regime.
The experts said currently only 35 percent of the country’s 7 million SMEs can avail of formal banking facilities and the rest remains untapped despite huge potentials of the sector. The country’s burgeoning cottage and micro industries terribly lag behind in the case of financial inclusion by the formal banking channels.
TIM Zahid Hossain, Advocacy Advisor of the Ultra-poor Graduation Programme of BRAC, in his keynote speech said people who are involved with the SMEs or cottage industries could be helped by linking them with the formal banking channels.
“With skill development training on basic accounting, risk management and shock absorption the SMEs would be better equipped to repay their loans. Thus the commercial banks can make more profit,” he observed.
Zaki Uz Zaman, UNIDO Country Representative in Bangladesh, said Aurora and Uttaran could be a good platform as they have the experience of handling grassroots people involved with the SMEs, especially in northern Bangladesh, in piloting a project for financial inclusion of small businesses.
Ashraful Alam, Country Project Coordinator of the UNCDF, said banks should come forward with specific product ideas that would benefit the SMEs and other smaller businesses.
Speakers at a seminar have said that millions of small and medium enterprises (SMEs), cottage and micro sector businesses that have remained out of formal banking channel need a big push with proper backing from larger financial institutions.
They said introduction of smart cards like bank debit cards with financial facilities could be an option to begin with.
The seminar titled ‘Uttaron-In Promoting Sustainable & Inclusive Finance for SME & Farmer and Discussion on SME Card’ was held on Sunday at the office of the United Nations Industrial Development Organisation (UNIDO).
Khondkar Morshed Millat, General Manager of the Sustainable Finance Department of the Bangladesh Bank, said the central bank has a favourable policy to bring the SMEs and cottage and micro industries under a greater financial inclusion scheme.
He said since the SMEs and small industries are playing a vital role any effort to bring them under an integrated approach will get support from the central bank that regulates the banking sector. “But things have to be in place under the existing policy and in conformity with banking rules and regulations.”
Millat said they are ready to discuss possibilities to extend their support to the ambition of bringing the vital cottage and micro businesses under a greater financial regime.
The experts said currently only 35 percent of the country’s 7 million SMEs can avail of formal banking facilities and the rest remains untapped despite huge potentials of the sector. The country’s burgeoning cottage and micro industries terribly lag behind in the case of financial inclusion by the formal banking channels.
TIM Zahid Hossain, Advocacy Advisor of the Ultra-poor Graduation Programme of BRAC, in his keynote speech said people who are involved with the SMEs or cottage industries could be helped by linking them with the formal banking channels.
“With skill development training on basic accounting, risk management and shock absorption the SMEs would be better equipped to repay their loans. Thus the commercial banks can make more profit,” he observed.
Zaki Uz Zaman, UNIDO Country Representative in Bangladesh, said Aurora and Uttaran could be a good platform as they have the experience of handling grassroots people involved with the SMEs, especially in northern Bangladesh, in piloting a project for financial inclusion of small businesses.
Ashraful Alam, Country Project Coordinator of the UNCDF, said banks should come forward with specific product ideas that would benefit the SMEs and other smaller businesses.
