NEW DELHI: Bangladesh’s proposed 'Microfinance Bank Ordinance 2025', to convert the country's microcredit system into fully regulated microfinance banks under supervision of Bangladesh Bank, could marginalise hundreds of smaller NGOs and poor households from accessing credit, a report has said.
New microfinance banking rules has drawn sharp criticism from 17 leading Microfinance Institutions (MFIs) in Bangladesh, including BRAC (Building Resources Across Communities), ASA (Association for Social Advancement), and TMSS (Thengamara Mohila Sabuj Sangha), the report from Finance Today said.
Analysts said the rules could centralise power among a few large institutions and marginalise hundreds of smaller NGOs.