[🇧🇩] Cottage Industry/SME in Bangladesh

[Saif]

Bangladesh Bank eases refinancing terms for state-owned, specialised banks to boost CMSME loans

Bangladesh Bank (BB) has relaxed the participation criteria for state-owned commercial and specialised banks under its refinancing facilities, a move aimed at accelerating the flow of credit to the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector. The SME and Special Programmes Departme

thefinancialexpress.com.bd

Bangladesh Bank eases refinancing terms for state-owned, specialised banks to boost CMSME loans

bdnews24.com

Published :
May 25, 2026 00:23
Updated :
May 25, 2026 00:23

Bangladesh Bank (BB) has relaxed the participation criteria for state-owned commercial and specialised banks under its refinancing facilities, a move aimed at accelerating the flow of credit to the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector.

The SME and Special Programmes Department of the central bank issued a circular to this effect today (Sunday).

According to the circular, the decision was taken to enhance the contribution of the CMSME sector to national economic growth and to expand employment opportunities at the grassroots level.

Under the new directive, state-owned commercial and specialized banks
can now enlist as participating financial institutions to access the
central bank's CMSME refinancing funds.

To facilitate this, the central bank has exempted these state banks from two mandatory conditions that previously restricted their eligibility.

The relaxed conditions include the obligation to maintain the non-performing loan (NPL) or classified investment ratio within a maximum cap of 20 per cent, mandatory adherence to Bangladesh Bank’s prescribed Capital Adequacy Ratio (CAR), Cash Reserve Ratio (CRR), and Statutory Liquidity Ratio (SLR).

By waiving these stringent capital and asset-quality thresholds, the central bank aims to utilise the vast rural and semi-urban network of state-run banks to channel low-cost funds directly to small and marginalised entrepreneurs across the country, BB officials said.​

 

[Saif]

BRAC Bank signs two deals with Bangladesh Bank to expand MSME financing

BRAC Bank has signed two agreements with Bangladesh Bank to enhance access to affordable financing for cottage, micro, small, and medium enterprises (CMSMEs), reinforcing its commitment to entrepreneurship development and financial inclusion, according to a press release. The agreements will enabl

thefinancialexpress.com.bd

BRAC Bank signs two deals with Bangladesh Bank to expand MSME financing

FE ONLINE DESK

Published :
Jun 01, 2026 21:02
Updated :
Jun 01, 2026 21:02

BRAC Bank has signed two agreements with Bangladesh Bank to enhance access to affordable financing for cottage, micro, small, and medium enterprises (CMSMEs), reinforcing its commitment to entrepreneurship development and financial inclusion, according to a press release.

The agreements will enable BRAC Bank to extend financing to entrepreneurs in various clusters nationwide and to provide low cost financing support to MSMEs under Bangladesh Bank’s Financial Sector Fund for the Development of MSMEs (FSFDMSME).

Under the Cluster Finance Refinance Scheme, which has a fund size of BDT 3,000 crore, BRAC Bank will provide easy term loans and working capital support to entrepreneurs engaged in various industrial clusters across the country. Eligible businesses will be able to access financing at concessional interest rates starting from 7%, supporting business expansion, productivity enhancement, and employment generation.

The second agreement allows BRAC Bank to participate in the BDT 1,500 crore Financial Sector Fund for the Development of MSMEs (FSFDMSME). Through this scheme, MSMEs in the manufacturing and service sectors will be able to obtain financing at a 7% interest rate. The facility offers loans of up to BDT 1 crore for micro enterprises and up to BDT 5 crore for small and medium enterprises.

Tareq Refat Ullah Khan exchanged the agreement documents with Nawshad Mustafa, Director, SME & Special Programmes Department, Bangladesh Bank, at a ceremony at Bangladesh Bank on May 18, 2026 in presence of Nurun Nahar, Deputy Governor, Bangladesh Bank.

Husne Ara Shikha, Executive Director, Bangladesh Bank; and Mahbubur Rahman, Head of Cottage, Micro & Small Business (Unit 2), Head of Liability and Cash Management, SME Banking, BRAC Bank; were present.

As the country’s leading SME-focused bank, BRAC Bank with refinancing support from Bangladesh Bank continues to play a pioneering role in widening access to finance for grassroots entrepreneurs, supporting business growth, employment creation, and sustainable economic development across Bangladesh.​