
Bangladesh Bank Allocates 27% Of Loans To CMSMES To Drive Employment Growth1 min read
In a major policy shift aimed at boosting business expansion and job creation, Bangladesh Bank has mandated that 27% of all loans be directed toward the Cottage, Micro, Small, and Medium Enterprises (CMSME) sector over the next five years reportedly.
Announced today (March 17) at a press conference at Bangladesh Bank’s headquarters in Motijheel, the initiative is expected to strengthen entrepreneurship, particularly in e-commerce and f-commerce, while making financing more accessible to small traders.
Key officials at the event included:
- Mustafizur Rahman, Executive Director of Bangladesh Bank
- Noushad Mustafa, Director of the SME Department
- Habibur Rahman, Assistant Spokesperson
Read more: Bangladesh Bank Cracks Down on Weak Banks with Dividend Ban
What’s Changing?
- E-commerce & F-commerce Entrepreneurs: Individuals in these sectors can now avail loans of up to Tk 5 lakh under the CMSME scheme.
- Easier Access for Small Traders: Small business owners without trade licenses will also be eligible for loans.
- Redefining Women-Led Businesses: A business will now be classified as woman-led if at least 20% of ownership is held by a woman and 51% of its workforce consists of women – lowering the ownership requirement from the previous 51% threshold.
- Dedicated CMSME Loan Management: Banks must set up separate departments to oversee CMSME lending and assess risks more effectively.
By prioritizing small businesses and women entrepreneurs, Bangladesh Bank’s latest policy aims to unlock new opportunities, spur job creation, and strengthen the backbone of the economy.
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