In a bold move to promote gender-inclusive economic growth, Bangladesh Bank has directed all banks and financial institutions to allocate 20% of their green financing to women entrepreneurs and 25% to the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector reportedly.
The directive, issued through a circular today (17 March), also mandates that 15% of all CMSME loans be distributed to women entrepreneurs, reinforcing the central bank’s commitment to empowering women-led businesses.
Currently, financial institutions are required to dedicate 5% of their total loans to green financing. However, the Bangladesh Bank emphasized that women entrepreneurship and the CMSME sector are pivotal to achieving sustainable industrialization and inclusive economic development in the country.
Read more:Â Bangladesh Bank Allocates 27% Of Loans To CMSMES To Drive Employment Growth
The circular highlighted that while various initiatives have been taken to empower women, bridge gender gaps, and boost their economic participation, the desired level of financing in these sectors has yet to be achieved.
To accelerate progress towards the government’s Sustainable Development Goals (SDGs), the central bank urged financial institutions to play a more proactive role in increasing investment in women-led enterprises and small businesses – key drivers of Bangladesh’s economic growth.
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