Bangladesh is exploring a framework for establishing a Mortgage Refinance Company (MRC) to strengthen housing finance and create new links between the mortgage market and capital market.
The Bangladesh Securities and Exchange Commission (BSEC) held discussions with a World Bank Group delegation on Wednesday over a feasibility study for setting up the proposed institution.
The meeting focused on the possible structure of an MRC, its role in expanding housing finance and how it could support the development of Bangladesh’s capital market.
BSEC said a mortgage refinance company could deepen the primary mortgage market by providing long-term refinancing support to financial institutions and help mobilise capital market funding for housing finance.
The feasibility study is being conducted by the World Bank Group following a formal request from the Financial Institutions Division of the Ministry of Finance.
The meeting was chaired by BSEC Chairman Masud Khan. BSEC Commissioners Tanwir Habib Rahman, Nahid Mahtab, Md Nafeez Al Tarik and Hossain Sadat attended the discussion along with BSEC Executive Director and Spokesperson Md Abul Kalam, Executive Director Mohammad Jahangir Alam and other officials.
Representatives from the World Bank Group also participated in the meeting.
The proposed institution is being considered as a possible mechanism to provide long-term funding support to housing finance providers, which could help expand mortgage lending capacity.
BSEC said participants exchanged views on the potential role of such an institution in developing the housing finance sector and increasing capital market participation in housing-related financing.
The regulator did not disclose a timeline for completing the feasibility study or whether a decision has been taken to establish the company.
The initiative follows broader efforts to explore new financing mechanisms and strengthen long-term funding channels within Bangladesh’s financial system.
