The Bangladeshi government has taken an initiative to establish a new “Microcredit Bank” aimed at helping small entrepreneurs secure capital on easier terms. The Financial Institutions Division under the finance ministry has drafted the Microcredit Bank Ordinance-2025 and published it on its website.
According to the draft, the proposed bank will operate as a social institution. Dividend payments to investors will not exceed the amount they invest, indicating profit will not be its primary objective. The bank is expected to have an authorised capital of Tk300 crore. The initial paid-up capital will be Tk100 crore, with borrower-shareholders providing at least 60 per cent of this amount and the remainder coming from other shareholders. Both individuals and institutions may become shareholders if they meet set conditions.
The authorised capital will be divided into three crore ordinary shares with a face value of Tk100 each. A separate division under the Microcredit Regulatory Authority will issue licences and oversee operations, led by a chief executive.
For operations, the bank will accept deposits from borrowers and other individuals. It may receive local or foreign assistance and grants compliant with the law, take out loans using its assets as collateral, buy shares of statutory organisations, and invest in government securities. Part of its deposits will be invested in government-backed instruments, subject to regulatory approval, to ensure financial stability.
Audits will be conducted by listed auditors in line with existing standards. The audited report must state whether adequate measures were taken to protect borrowers’ interests as required by the draft ordinance.
