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Microfinance Industry Report: Bangladesh
27 May 2009, Credit and Development Forum, Banking with the Poor Network & SEEP Network
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Overview of the microfinance industry in Bangladesh

This paper reviews the microfinance sector in Bangladesh, and contributes to the Banking with the Poor Network’s Asia Resource Centre for Microfinance. The industry is currently going through a phase of formalization and transformation.

Microfinance has been successful in Bangladesh, and MFI clients have demonstrated increasing demand for new loans and repeat loan requests. Features of Bangladeshi microfinance include:

Market saturation in some parts of the country and evidence of unserved populations in others;
Individual and collective expertise to develop appropriate products and manage high costs of delivering financial services to the unbanked;
Government and central bank policies that encourage commercial banks to refinance the MFI sector;
Establishment of Bangladesh Microfinance Regulatory authority and the MRA act to help in consolidating the industry and fostering growth.

The paper states that the success of Bangladeshi microfinance is also due to clients’ credit culture, discipline and commitment towards maintaining regular repayment.

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18 Feb 2010


The report does not reflect the complete picture of microfinance history of Bangladesh. It also does not give complete insight to microfinance in Bangladesh. The report basically captured information from Grameen Bank which is definitely important as it has given microfinance an appropriate institutional shape suitable to poor people. The report did not include microcredit movement of traditional and comilla cooperative, special cooperatives and pilot and experimental projects on microfinance in the 1960s and 1970s. The report gives a rough idea about microfinance sector of Bangladeh. There is ample scope to improve it. On the other hand, the country report of Nepal appears to be comprehensive

Zahirul Alam Integrated Development Foundation (IDF) Bangladesh

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Journal Volume/Pages:
36

Publisher(s):
Banking with the Poor Network
The Small Enterprise Education Promotion Network