The bank-client relationship is not the only criteria for the stimulus package; instead, the loan can be given based on books of accounts as per the circular observed by Abu Farah Md. Nasser, Deputy Governor, Bangladesh Bank. He spoke at the 9th Financial Sector Development Working Committee (FSDWC) Meeting organised virtually by Business Initiative Leading Development (BUILD) on September 22, 2021. Abu Farah Md. Nasser, Deputy Governor, Bangladesh Bank (BB), and N. K. A. Mobin, Acting President of Dhaka Chamber of Commerce and Industry (DCCI), co-chaired the meeting.
The Deputy Governor of Bangladesh Bank also observed that currently, banks like Brac Bank are improving the modalities of SME banking. CGS has been implemented for the collateral-free loan. In each division of the country, collateral-free loan lending has been prioritised. 10% collateral-free loan has been directed to provide to the women entrepreneurs. 8% of the total loan has to be gone to the women entrepreneurs at 5% interest. 1% incentive has been announced for both women entrepreneurs and banks for recognising good borrowers. Abu Farah Md. Nasser informed the meeting that the Ministry of Industries has already been requested to bring alternatives for trade licenses for the cottage, micro, and small enterprises to resolve the trade license issue in lending. He informed that Bangladesh Bank had introduced a new BDT 500 crore collateral-free loan scheme through agent banking, MFS, and bank sub-branch to finance rural and ultra-poor individuals and businesses. The scheme would follow the model of Leno financing to process loan applications in the shortest possible time and funding at the grassroots level. He further added that the central bank had implemented policies to ensure banks’ liquidity support and reduce the burden of the cost of funds for the private sector, especially CMSMEs. He also mentioned the initiative of Central Bank and World Bank in setting up an independent entity for payment gateway for CMSMEs. He emphasised the proactive initiatives of Bangladesh Bank and the country’s scheduled banks that up to June 2020, BDT 2,43,000 crore disbursement has been made to the SMEs by Banks.
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