Bringing microfinance institutions under a banking framework in the name of regulation would amount to corporate encroachment and cannot be accepted. The interim government's proposed Microcredit Bank Ordinance-2025 must be withdrawn immediately. Speakers alleged that the ordinance represents a clear blueprint to dismantle the microfinance sector under the guise of banking reform. They further questioned the feasibility of such a move, noting that even managing the country's existing 67 banks poses significant challenges for Bangladesh Bank.
In that context, they asked how it would be possible to effectively regulate and oversee hundreds of NGOs and microfinance institutions if they were brought under the same banking system. It is noteworthy that among the 16 ordinances promulgated by the interim government, which the current government has kept in abeyance to further strengthen them, the Microcredit Bank Ordinance-2025 is among them.
They further stated that, instead of creating risks through the ordinance, initiatives should be taken to strengthen microfinance institutions financially by expanding opportunities for savings. At the same time, provisions should be made to allow the filing of certificate cases under the Public Demand Recovery Act-91 to prevent the misappropriation of funds. They also emphasized that regulatory oversight of the microfinance sector should not be transferred to the Bangladesh Bank. Rather, existing institutions such as the Microcredit Regulatory Authority (MRA), Palli Karma-Sahayak Foundation (PKSF), and the NGO Affairs Bureau should be further strengthened and allowed to operate within their respective mandates.
