BANGLADESH passes Microcredit Regulatory Authority Act

For the first time, all nonprofits and cooperatives that provide microcredit will be regulated by a central authority.

The Microcredit Regulatory Authority Act (MCRA Act) establishes the MCRA and delineates its powers, including:

* The authority to issue and revoke certificates to provide microcredit
* Oversight with respect to governance, reporting, disclosure, and supervision
* Establishment of a depositor's insurance fund
* Ability to impose administrative fines for noncompliance with rules and regulations

The MCRA Act was passed on July 16, 2006, and it went into effect on August 27, 2006. All organizations that wish to continue to provide microcredit services must apply for a certificate no later than February 26, 2007.

An unofficial English translation of the MCRA Act is available here.