ঢাকাশুক্রবার , ৭ অগাস্ট ২০২৬
Leading development and microfinance organizations have raised serious concerns over the government’s proposal to establish a microcredit bank, promoted as a “social innovation,” saying it could undermine Bangladesh’s proven microfinance system and expose the poorest citizens to financial risk.
The warning comes from COAST Foundation, BDCSO Process, and EquityBD, which collectively represent a wide network of grassroots organizations. BDCSO Process works with 545 local-level NGOs, while EquityBD has 70 partner organizations across the country, ensuring the concerns reflect voices from communities nationwide.
Experts highlight the risk of “mission drift,” a common phenomenon when microfinance institutions transition into banks. Research by the World Bank and the Consultative Group to Assist the Poor (CGAP) shows that such conversions often result in larger loans, reduced field-level social programs, and restricted access for women and marginalized communities.
Although the draft ordinance frames the proposed bank as a social enterprise, banking laws primarily prioritize profitability and capital adequacy, leaving little room for social objectives. While poor members are reportedly set to hold 60% of shares, decision-making authority will largely remain with professional boards and regulators—raising concerns that the savings and investments of the poor could be jeopardized.
Bangladesh’s microfinance sector, currently regulated by the Microcredit Regulatory Authority (MRA), is considered one of the most extensive and stable in the world. Experts caution that rushing to convert existing institutions into banks could unnecessarily disrupt a successful social system.
“This is not innovation; it’s a regulatory experiment cloaked in social language, and the poorest stand to lose the most,” said development specialists familiar with global microfinance trends.
The coalition urges the government to pause, conduct broad stakeholder consultations, and explore safer reforms before proceeding. Without careful planning, they warn, the proposed microcredit bank could turn a socially beneficial system into a profit-driven model, leaving the country’s most vulnerable behind.
