Bangladesh is amongst the most densely populated countries in the world with a population of 154.7 million. The dominant microfinance group lending model was pioneered in Bangladesh by Professor Muhammad Yunus, founder of Grameen Bank.
While poverty reduction in both urban and rural areas has been remarkable, the absolute number of people living below the poverty line remains significant with around 43.3% of Bangladeshi people living on less than USD 1.25/day in 2010. MIX Market reports that total number of MFI borrowers and depositors in Bangladesh are 15.8 million and 19.2 million respectively.
Bangladesh Bank is the central bank and apex regulatory body for the country's monetary and financial system and is responsible for formulation and implementation of monetary and credit policies. It regulates and supervises banks and non-bank financial institutions.