Prime Bank has signed participation agreements with Bangladesh Bank (BB) under two refinance schemes aimed at broadening financing support for cottage, micro, small and medium enterprises (CMSMEs) and cluster‑based industries, the bank said in a press statement on Wednesday. The agreements cover the Cluster Financing Scheme and the Financial Sector Fund for the Development of Micro, Small and Medium Enterprises (FSFDMSME), both designed to improve access to affordable credit for smaller businesses, the release said.
The refinance initiatives seek to support entrepreneurship, create jobs and promote sustainable industrial growth by providing competitively priced financing, the central bank and Prime Bank said. The FSFDMSME is a Tk1,500 crore revolving fund backed by Bangladesh Bank to help CMSMEs expand and modernise operations. The Tk3,000 crore Cluster Financing Scheme targets geographically concentrated business clusters to help enterprises benefit from shared resources, operational efficiency and stronger market linkages.
The signing ceremony was attended by Bangladesh Bank deputy governor Nurun Nahar, executive director Husne Ara Shikha and director Nawshad Mustafa, according to the statement. Representing Prime Bank were Faisal Rahman, acting chief executive officer, M Nazeem A Choudhury, additional managing director, and Shaikh Nur Alam, head of small business and refinance.
“CMSMEs are central to Bangladesh’s economy and their growth is essential for inclusive development,” Faisal Rahman said in press remarks. “Through these refinance schemes, we are not just extending financing — we are enabling dreams, strengthening entrepreneurs and supporting businesses to grow sustainably.”
Rahman said Prime Bank is particularly focused on supporting cluster‑based enterprises, where collective strength can improve productivity, innovation and access to markets. The initiatives are expected to help smaller firms invest in equipment, technology and expanded output, contributing to longer‑term economic resilience, the release added.
Both Bangladesh Bank and Prime Bank reaffirmed their commitment to implementing the schemes in line with regulatory guidelines, with emphasis on transparency, efficiency and support for CMSME entrepreneurs across the country, the statement said.
CMSMEs have long been identified by policymakers as a key driver of job creation and balanced regional development in Bangladesh. However, access to credit at affordable terms has often been a constraint for smaller firms, particularly those outside major urban centres. By participating in the FSFDMSME and Cluster Financing Scheme, Prime Bank joins other financial institutions in channeling funds to sectors that may otherwise struggle to obtain formal bank financing.
The Cluster Financing Scheme’s focus on concentrated industries is intended to enable groups of related businesses to leverage collective advantages such as shared infrastructure, market intelligence and aggregated purchasing, officials said. Such clusters can include textile and garment suppliers, agro‑processing units or light engineering firms, among others.
The FSFDMSME revolving fund offers financial institutions the ability to on‑lend at competitive rates while maintaining liquidity, helping banks to manage risk and extend credit more widely. Participation in these schemes is expected to strengthen Prime Bank’s portfolio in the CMSME segment, supporting its strategy to expand small business lending.
Prime Bank and Bangladesh Bank did not specify a timeline for disbursement under the agreements but said implementation will begin in accordance with regulatory frameworks and internal procedures. Both parties said they will monitor uptake and impact to ensure the schemes meet their objectives.
Prime Bank’s participation follows a broader push by Bangladesh Bank to enhance financial inclusion and deepen credit penetration among CMSMEs, which contribute significantly to employment and GDP growth. The refinanced financing is seen as a key instrument in reducing cost barriers and encouraging banks to serve smaller enterprises more actively.
