Note: The data are provided for informational purposes only and in some cases, the information may be incomplete, not fully accurate or out of date. For more information on how data are compiled, see "A Note About Sources." The date of the last update for each country is marked in the section "Country Indicators." We welcome updates and comments. Click here to write to us.
Bangladesh
Country Indicators
Information Last Updated
January 2007
Information Compiled by
Jeremiah Grossman, IRIS Center
Population (Millions)
141.8 [2005]
Population Density (per sq km)
1090 [2005]
GNI per capita (US$)
470 [2005]
GNI per capita (PPP US$)
2090 [2005]
Total Unemployment (% of labor force)
3.3 [2000]
Employment in Agriculture (% of total employment)
62 [2000]
Gross domestic saving (% of GDP)
18 [2005]
% Population under $2/day (PPP)
82.8 [2000]
Depth of Financial Sector (M2/GDP)
34.8 [2001]
Exchange rate
USD 1 = BDT 70.15 (as of Jan 11, 2007)
Percentage of population with access to banking services
Due to high population density and the dramatic success of microfinance in Bangladesh, most of the poor have access to microfinance services in Bangladesh. However, in certain low-density provinces, as few as 1/3 of the poor have access (Country Profile, CDF).
Capitalization of banks, NBFIs, stock market
Stock market capitalization to GDP [2001]: 0.0224
Ownership structure of banks (and financial institutions if available)
There are currently 4 nationalized commercial banks (NCBs), five government-owned specialized banks (SBs), 30 domestic private commercial banks (PCBs), 9 foreign commercial banks (FCBs), and 28 non-bank financial institutions (NBFIs), of which 15 are local, 12 are joint ventures with foreign participation, and 1 is government-owned. The banking system is dominated by the NCBs (37% of total assets) and PCBs (46%), followed by the SBs (10%) and FCBs (7%). Insurance is provided by 62 companies (44 general insurance companies, including 1 state-owned company; and 18 life insurance companies, including 1 state-owned and 1 foreign company) (as of Dec. 2005) (Financial Sector Review, Chap. 1, Bangladesh Bank).
Formal and Semi-Formal Sources of Microfinance
Commercial and specialized banks; Grameen Bank; NGO-MFIs; cooperatives.
With the establishment of the Micro Credit Regulatory Authority through the Micro Credit Regulatory Authority Act in July 2006, all organizations offering microcredit services will be certified and regulated. All existing organizations must apply for certification no later than February 26, 2007 (MFIs to Obtain Licence to Run Micro-Credit, New Nation Online) (MCRA Act 2006).
Palli Karma-Sahayak Foundation (PKSF): PKSF acts as an apex fund that on-lends funds sourced from the Bangladesh government, foreign donors, and other contributors to MFIs. PKSF lent over USD 58 million (4.07 billion BDT) in FY 2003-04 at subsidized rates for lending and capacity building (Country Profile, CDF)
Definitions of microfinance or microcredit
MICROCREDIT: Loans offered by a micro credit organization for poverty alleviation, employment generation, or to support small entrepreneurs (MCRA Act 2006, Section 3(22)).
Ongoing microfinance policy development status
On July 16, 2006, Bangladesh enacted the Micro Credit Regulatory Authority Act, creating a regulatory and supervisory authority governing the activities of "micro credit organizations" that lend to and/or accept deposits from the poor (including nonprofit organizations, cooperative societies, and for-profit companies). The Act, which went into effect on August 27, 2006, requires all such organizations to file applications for a license to provide microcredit by February 26, 2007. The Act provides for reporting and disclosure requirements, inspection and auditing of MFIs, criteria for directors and officers, creation of a reserve fund, and other regulatory requirements. Rules detailing these requirements will be introduced in the near future. (MCRA Act 2006, Sections 2(21), 15, 51) ( MFIs to Obtain Licence to Run Micro-Credit, New Nation Online)
Safety net availability: insurance, pension, etc.
Old-age pensions for low-income citizens; sickness and maternity benefits; worker's compensation; limited unemployment benefit ( Social Security in Bangladesh, SSA).
Commercial banks target wealthier clients and larger companies in general, with limited financing for SMEs and microenterprises. SBs target the agricultural sector, industrial sector, and small-scale and cottage industries (Financial Sector Review, Chap.'s 1-2, Bangladesh Bank).
ASSETS OF LEASING NBFIs: Approx. US $ 641.48 million (BDT 45 billion) OUTSTANDING LOANS OF LEASING NBFIs: Approx US $ 926.59 million (BDT 65 billion) (as of Dec. 2005) (Financial Sector Review, Chap. 4, Bangladesh Bank).
NBFIs provide mostly leasing services, and some merchant banking and housing finance as well. Currently, they do not target microfinance clients (Financial Sector Review - Chap. 4, Bangladesh Bank)
Not permitted to accept demand deposits. Min. term is 1 year for most deposits, 6 months for institutional deposits (Financial Sector Review - Chap. 4, Bangladesh Bank)
Insurance Companies
62: 44 general insurance companies (1 state-owned) and 18 life insurance companies (1 state-owned). (Financial Sector Review, Chap. 1, Bangladesh Bank).
DIRECT PREMIUMS WRITTEN: USD 321 million (BDT 22.5 billion) (total) of which USD 210 million (BDT 14.7 billion) are life insurance premiums and USD 111 million are non-life insurance premiums (Bangladesh Profile, International Insurance)
399 credit cooperative societies (many more cooperatives are not focused specifically upon provision of credit (as of 2001) ( WOCCU 2005)
106,580 (credit cooperative societies only) (as of 2001)( WOCCU 2005)
US $12,120,615 (BDT 850.3 million) (credit cooperative societies only) (as of 2001) ( WOCCU 2005)
Non-profit institutions
NGO-MFIs
Over 1,000, although only 582 reported statistics for July 2005 - December 2005, and only 469 of these reported in a usable format. These 469 MFIs have 7,733 branches. Of these, only 4 MFIs are large: ASA, BRAC, PROSHIKA, and Grameen Bank. Grameen Bank is regulated separately, but the following figures include Grameen's numbers as well (as of Dec. 2005 for 469 NGO-MFIs) (Financial Sector Review, Chap. 1, Bangladesh Bank) (NGO-MFIs in Bangladesh, Chap. 1, Bangladesh Bank).
18.82 million active members, 13.98 million borrowers (for 469 NGO-MFIs as of Dec. 2005) (NGO-MFIs in Bangladesh, Chap. 1, Bangladesh Bank)
Poor citizens, mostly (80-90%) women. Average savings per member is US $ 16.54 (BDT 1,116), and average outstanding credit per member is US $ 57.18 (BDT 4,011) (NGO-MFIs in Bangladesh, Chap. 1, Bangladesh Bank).
General Approach to Regulating
Legal basis for regulating
Definition or description of institution
Regulator(s) and role of regulator(s)
Activity that determines required regulatory status
Any business conducting banking business, meaning accepting deposits from the public for the purpose of lending or investments (Bank Companies Act 1991 (as amended), Section 5(o-p)).
Leasing, merchant banking, and other financing services to commercial entities, with lower capital requirements and without the ability to accept demand deposits.
Cooperatives/Credit Unions
Credit Cooperatives
Cooperative Societies Ordinance, 1984 (cited as “Ordinance.”); Cooperative Societies Rules 1987 [cited as “Rule”]; Micro Credit Regulatory Authority Act; Micro Credit Regulatory Authority Rules (rules forthcoming in 2007)
Cooperative societies are societies established to promote the common interests of their members using cooperative principles. Credit cooperative societies create funds to be on-lent to members (Ordinance 8(1); Rule 2(2) (vi), cited in WOCCU 2005).
Registrar of Cooperative Societies and Micro Credit Regulatory Authority (MCRA). MCRA issues and cancels registration certificates, audits MFI accounts, etc. (Ordinance 6, cited in WOCCU 2005) (MCRA Act 2006, Section 9).
Deposit and lending services offered by a membership-based cooperative society.
The World Bank has estimated the following costs for a small to medium-sized business in Bangladesh: STARTING A BUSINESS: 37 days, US$ 412 (BDT 28,901). DEALING WITH LICENSES: 185 days, $1,280 (BDT 89,792) ( Doing Business in Bangladesh, World Bank)
Cooperatives/Credit Unions
Credit Cooperatives
Cooperative Societies Ordinance, 1984 (cited as “Ordinance.”); Cooperative Societies Rules 1987 [cited as “Rule”]; Micro Credit Regulatory Authority Act & Rules also apply (rules forthcoming in 2007). Microcredit organizations must apply for a certificate to engage in microcredit activities by Feb. 26, 2007 .
Registrar of Cooperative Societies (for cooperative registration); Micro Credit Regulatory Authority (for license to offer micro credit) (Ordinance 6, cited in WOCCU 2005) (MCRA Act 2006, Sections 2(21), 15(1)).
Cooperative Society
Must have at least 10 members . No member may hold more than 1/5 of share capital, and the government may hold shares [See ]. Rules for microcredit organizations will be determined by forthcoming rules (Rules 6(1), 110; Ordinances 38, 61, 67, cited in WOCCU 2005) (MCRA Act 2006, Section 50).
COST: Application fee of (BDT 500) (USD 7.13) and license fee (amount to be determined) will be charged upon application for a certificate from the Micro Credit Regulatory Authority to provide micro credit (MCRA Act 2006, Section 16(2)) ( MFIs to Obtain Licence to Run Micro-Credit, New Nation Online).
Non-profit institutions
NGO-MFIs
NGO-MFIs may register under the Societies Registration Act of 1860, the Trust Act of 1882, the Voluntary Social Welfare Agencies Ordinance of 1961, or the Companies Act 1994. Micro Credit Regulatory Authority Act & Rules also apply (rules forthcoming in 2007). Microcredit organizations must apply for a certificate to engage in microcredit activities by Feb. 26, 2007.
For registration as a nonprofit organization, depends on legal form of organization. For license to offer microcredit, Micro Credit Regulatory Authority (MCRA Act 2006, Sections 2(21), 15(1)).
Society, trust, nonprofit company limited by guarantee.
Rules for microcredit organizations will be determined by forthcoming rules (MCRA Act 2006, Section 50).
1. CEOs AND ADVISERS: No convictions; no history of personal insolvency or default on loan obligations; no violations of rules, regulations, or norms set by a regulatory authority; no prior association with a company or organization whose license was cancelled or which became bankrupt; no history of disqualification or dismissal as Chairman, Director, or CEO of any company; at least 15 years of financial institution experience; for CEOs, at least 2 years of experience at the post just below that of CEO; good performance record and good academic education in the field; no business interest in the bank; Bangladesh Bank approval required. 2. DIRECTORS: Max. 13; relatives may not serve on a Board together; min. 10 years of managerial/professional experience; no criminal convictions or involvement in fraud, financial wrongdoing, or other illegal activities; no bankruptcy adjudications; no adverse findings in legal proceedings; no prior contravention of financial sector rules or regulations; no involvement with a company or firm whose license was revoked or suspended or which was liquidated; no defaults on personal loans; may not be a Director or adviser of another financial institution, a paid employee, or a Director of a company that controls over 20% of total voting rights in the bank (except with Bangladesh Bank permission); individual Directors or entire Board may be removed if deemed necessary by Bangladesh Bank (BRPD Circulars No. 15 (Sept 3, 2002) and No. 6 (March 16, 2003), summarized in Prudential Regulations for Banks, Bangladesh Bank) (BRPD Circular No. 12, April 26 2003) (Bank Companies Act 1991 (as amended), Sections 23, 46-48).
Before approving CEO or adviser, Bangladesh Bank will review full biodata and terms and conditions of appointment (BRPD Circulars No. 15 (Sept 3, 2002) and No. 6 (March 16, 2003), summarized in Prudential Regulations for Banks, Bangladesh Bank)
Cooperatives/Credit Unions
Credit Cooperatives
Shall be set forth in the cooperative's by-laws. If the government holds more than 50% of the paid–up share capital of the society, the Registrar shall nominate one-third of the members of the managing committee. MCRA Act requires all microcredit organizations to have a Board-appointed CEO who also acts as the Board of Director's secretary. Directors and Officers are disqualified if they have: declared bankruptcy; committed a crime of "moral turpitude;" or misappropriated funds. Officials who were involved at a high level with a closed microcredit organization require MCR Authority approval. MCR Authority may remove CEO or a Director at any time for good cause. Further licensing requirements will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007) ( Ordinances 18, 28, cited in WOCCU 2005) (MCRA Act 2006, Sections 28-29).
Must convince Registrar of Cooperatives of ability to remain financially solvent for at least two years. New rules for microcredit organizations will also be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007) (Rule 9(2), cited in WOCCU 2005).
Will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007)
Will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007)
Will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007)
Non-profit institutions
NGO-MFIs
MCRA Act requires all microcredit organizations to have a Board-appointed CEO who also acts as the Board of Director's secretary. Directors and Officers are disqualified if they have: declared bankruptcy; committed a crime of "moral turpitude;" or misappropriated funds. Officials who were involved at a high level with a closed microcredit organization require MCR Authority approval. MCR Authority may remove CEO or a Director at any time for good cause. Further licensing requirements will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007) (MCRA Act 2006, Sections 28-29).
Will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007)
Will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007)
Will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007)
Will be set under the Micro Credit Regulatory Authority Act Rules (forthcoming in 2007)
Capital and Reserves
Minimum capital
Minimum capital adequacy/gearing ratios
Forms of capital recognized
Risk-weighting of assets
Loan loss provisioning, write-off
Reserves, Liquidity requirements
Banks
Banks
9%, with at least 4.5% in core (Tier I or primary) capital (BRPD Circular No. 10).
9%, with at least 4.5% in core (Tier I or primary) capital (BRPD Circular No. 10).
Core (primary, Tier I) capital includes: paid up capital; non-repayable share premium account; statutory reserve, general reserve; retained earnings; minority interest in subsidiaries; non-cumulative irredeemable preference shares; and dividend equalization account. Supplementary (secondary, Tier II) capital includes: General provision (1% of non-delinquent loans); asset revaluation reserves; all other preference shares; perpetual subordinated debt; and exchange equalization account (BRPD Circular No. 10).
0%: Cash; deposits that may be withdrawn on demand or on short notice at all banks in Bangladesh and at public NBFIs in Bangladesh; foreign currency balances with Bangladesh Bank or foreign banks; bill issued by non-autonomous central government agencies. 20%: Deposits that may be withdrawn on demand or on short notice at private NBFIs in Bangladesh; foreign investment in OECD countries; bills or advances issued by local government, banks or public NBFIs, autonomous or semi-autonomous government agencies; bills issued by private NBFIs. 50%: Foreign investment in non-OECD countries; export bills and other foreign bills; bills or advances issued by non-financial public enterprises; advances issued by private NBFIs; fixed assets; valuation adjustments. 100%: Bills or advances issued by private companies; other assets. For more information, see circular (BRPD Circular No. 10).
As of June 05, 2006, loan loss provisioning is as follows for standard bank loans: General provision: Regular unclassified loans: 1% Small enterprise financing; housing financing; and loans to professionals to set up businesses: 2% Other consumer financing: 5% FOR MICRO-CREDIT AND SHORT-TERM AGRICULTURAL LOANS: Regular (not overdue): 5% Irregular (1 day - less than 12 months overdue): 5% Substandard (12 months - less than 36 months overdue): 5%; Doubtful (36 months - less than 60 months overdue): 5% Loss (60 months or more overdue): 100% FOR OTHER LOANS (INCLUDES LINES OF CREDIT, LOANS REPAYABLE UPON DEMAND, SHORT- AND LONG-TERM FIXED LOANS): See Circular for full details. QUALITATIVE JUDGMENT: Regardless of the loan’s classification, it is also subject to qualitative judgment if any doubt arises regarding repayment of the loan. See Circular for full details. (BRPD Circular No. 05)
RESERVE FUND: If the sum of this account plus the share premium account is less than the bank's paid-up capital, the bank must contribute 20% of its annual profits to the reserve fund. CASH RESERVE (as of Oct. 2005): Min. 5% of time and demand liabilities. STATUTORY LIQUIDITY REQUIREMENT (as of Oct. 2005): Min. 18% of time and demand liabilities (Bank Companies Act 1991 (as amended), Sections 24, 25, 33) (Letter of Intent, IMF, Para. 6).
Cooperatives/Credit Unions
Credit Cooperatives
To be determined by forthcoming rules and regulations (MCRA Act 2006, Section 50).
To be determined by forthcoming rules and regulations (MCRA Act 2006, Section 50).
A bad debt fund shall be maintained and 10% of net profits must be committed to it each year. Rules for microcredit organizations will be determined by forthcoming rules (Ordinances 55(5), 55(6)(a), cited in WOCCU 2005) (MCRA Act 2006).
15% of net profits must be contributed to a reserve fund. In addition, provisioning to maintain liquid resources must be made as prescribed. MCRA Act also requires microcredit organizations to maintain a reserve fund (amount of fund to be determined in Rules) (see Rules 11 (2k), 74-75, 100; Ordinances 32, 55(1-3), 55(5), 55(6)(b), 57, 58, cited in WOCCU 2005) (MCRA Act 2006, Section 30).
Non-profit institutions
NGO-MFIs
To be determined by forthcoming rules and regulations (MCRA Act 2006, Section 50).
To be determined by forthcoming rules and regulations (MCRA Act 2006, Section 50).
Rules for microcredit organizations will be determined by forthcoming rules (MCRA Act 2006).
MCRA Act requires microcredit organizations to maintain a reserve fund (amount of fund to be determined in Rules) (MCRA Act 2006, Section 30).
Risk Management Guidelines
Guidelines & restrictions on financial services
Guidelines & restrictions on operational rules
Guidelines & restrictions on interest rates
Concentration of risk
Connected/insider business
Banks
Banks
PERMITTED: Deposits of all types, lending, guarantees, forms of Islamic banking such as mudaraba or musharaka certificates, letters of credit, foreign exchange, dealing in stocks, shares, debentures, obligations, selling bonds, safe deposit boxes, collecting money against securities, acquiring property, and other services.
PROHIBITED: Buying or selling goods, except goods offered as security, or in cases of Islamic banking forms (Bank Companies Act 1991 (as amended), Sections 7, 9).
OPENING/MOVING BRANCHES: Requires prior authorization by Bangladesh Bank. DIVIDENDS: Banks generally may declare a dividend without Bangladesh Bank approval, so long as distribution of the dividend will not result in a capital shortfall. If dividend exceeds 20%, bank must deposit a sum equal to the amount in excess of 20% in a "Dividend Equalization Account" (which will be treated as Core (Tier I primary) Capital) (Bank Companies Act 1991 (as amended), Section 32). (BRPD Circular Letter No. 18, October 20, 2002, summarized in English in Prudential Regulations for Banks, Bangladesh Bank).
None. All restrictions on interest rates (both for loans and deposits) and bank charges have been removed, except for lending rates in the export sector (which were fixed at 7% per annum in January 2004). Changes to bank charges and commissions must be disclosed to Bangladesh Bank (BRPD Circular No. 1, Feb. 19, 1997; BRPD Circular No. 1, Jan. 10, 2004; and BRPD Circular No. 3, Jan. 11, 1990, all summarized in English in Prudential Regulations for Banks, Bangladesh Bank).
EXPOSURE TO INDIVIDUAL OR GROUP OF RELATED BORROWERS (GENERAL): Max. 35% (cumulative funded and non-funded) of total capital, of which max. 15% may be funded (non-funded includes letters of credit, guarantees, etc.). FOR EXPORT SECTOR: Max. 50% (cumulative), of which max. 15% may be funded. EXPOSURE TO "LARGE LOANS" (10% OR MORE OF BANK'S TOTAL CAPITAL): Max. 40-56% of total loans and advances, depending upon the percentage of the total loan portfolio that is overdue (not current). LOANS AGAINST SHARES QUOTED ON THE STOCK EXCHANGE: Max. 40% of market value of shares; max. of (BDT 1 million) per individual, and max. of 5% of bank's total liabilities for aggregate loans against shares. OWNERSHIP IN ANY OTHER INDIVIDUAL COMPANY (EXCLUDING SUBSIDIARIES): Max. 30% of the sum of the paid-up capital (and reserve capital, if applicable). AGGREGATE OWNERSHIP IN OTHER COMPANIES (EXCLUDING SUBSIDIARIES): 10% of the bank's total obligations. NOTES: Exposure limits do not apply for government-guaranteed loans or loans backed by cash or cash equivalents (BRPD Circular No. 5, April 9 2005) (BRPD Circular No. 02, Feb 6 1995; BRPD Circular No. 4, May 28 1995; and DBOD Circular No. 11, August 29, 1995, all summarized in English in Prudential Regulations for Banks, Bangladesh Bank) (Bank Companies Act 1991 (as amended), Section 26).
Loans, guarantees, or securities granted to a Director or his/her relatives must be secured, must have Board approval, and must be mentioned in the balance sheet. Total amount not to exceed 50% of the paid-up value of the shares of the bank held in the Director's own name. Loans where the borrower is partially or fully exempted from bearing the loss -- including Mudaraba or Musharaka loans -- may not be extended to bank Directors or their relatives. Liabilities exceeding certain levels ((BDT 1-5 million) (USD 14,255 - 71,275), depending on type of liability) require approval of Bangladesh Bank. Must submit quarterly statement of liabilities of Directors and ex-Directors (BRPD Circular No. 7, summarized in Prudential Regulations for Banks, Bangladesh Bank) (Bank Companies Act 1991 (as amended), Sections 27, 28).
Cooperatives/Credit Unions
Credit Cooperatives
Permitted: loans and deposits to members; Prohibited: Loans to and deposits from non-members. Under cooperative law, deposits from non-members may be accepted if permitted in the cooperative's rules and bylaws. However, the MCRA Act prohibits the acceptance of deposits from non-members. (Ordinances 32, 39, cited in WOCCU 2005) (MCRA Act 2006, Section 32).
Changes to constitution (articles of association) prohibited without prior approval of MCR Authority. Dividend distribution prohibited without government approval, and microcredit organizations that are tax-exempt or receive government assistance may not distribute dividends under any circumstances (MCRA Act 2006, Sections 20, 31).
Interest rates must be published in cooperative’s bylaws. There is no interest rate restriction currently specified for microcredit organizations, but the MCRA Act suggests that microcredit organizations' rates for credit services may be determined by the MCR Authority (Rule 11(2)(n)(ii), cited in WOCCU 2005) (MCRA Act 2006, Section 24(g)).
Maximum loans to one member to be prescribed by the rules and bylaws of the credit cooperative. Restrictions for microcredit organizations will be determined by forthcoming rules (Rules 11(2)(n)(iv-vi), 79-83, cited in WOCCU 2005)) (MCRA Act 2006, Section 50).
MCRA Authority prohibits investment of deposits in sources that would benefit insiders (MCRA Act 2006, Section 32(4)).
Changes to constitution (articles of association) prohibited without prior approval of MCR Authority. Dividend distribution prohibited without government approval, and microcredit organizations that are tax-exempt or receive government assistance may not distribute dividends under any circumstances (MCRA Act 2006, Sections 20, 31).
None currently specified, although the MCRA Act suggests that microcredit organizations' rates for credit services may be determined by the MCR Authority (MCRA Act 2006, Section 24(g)).
Rules for microcredit organizations will be determined by forthcoming rules (MCRA Act 2006, Section 50).
MCRA Authority prohibits investment of deposits in sources that would benefit insiders (MCRA Act 2006, Section 32(4)).
Reporting and Supervision
Supervision Method
Supervision costs and fees
Disclosure and reporting requirements
Depositor protection mechanisms (e.g., deposit insurance or lender of last resort)
Banks
Banks
Bangladesh Bank can carry out on- or off-site inspections at any time (See Bank Companies Act 1991 Sect. 44)
REPORTING: MONTHLY: Insider loans and advances; liquidity ratio; capital adequacy ratio. QUARTERLY: "Large Loans" (10% or more of total capital) statement. SEMI-ANNUALLY: Asset and Liability reports. ANNUALLY: Balance sheet, profit and loss account, and full, audited financial report. DISCLOSURE: Copies of financial statements must be available for public viewing at each bank branch, through publication in one Bangla and one English newspaper of wide circulation, and on the bank's website (Bank Companies Act 1991 (as amended), Sections 27, 33, 34, 36, 38); (BRPD Circular No. 14, June 25 2003) (BRPD Circular No. 5, April 9 2005).
Deposits of all scheduled banks are insured up to (100,000 BDT) (USD 1,425) per depositor by Bangladesh Bank. Banks must pay a sum equivalent to 0.07% of their total deposit liabilities annually to Bangladesh Bank-managed "Deposit Insurance Trust Fund" (Bank Deposit Insurance Act 2000, summarized in English in Prudential Regulations for Banks, Bangladesh Bank).
Cooperatives/Credit Unions
Credit Cooperatives
Registrar of Cooperatives audits cooperative accounts annually. In addition, Registrar may inspect cooperative at any time upon request from creditors, cooperative members/managers, or on her/his own initiative. Both MCRA and Bangladesh Bank also reserve the right to conduct on-site or off-site inspections at any time (Ordinances 31, 76, 79-80, 82-84, cited in WOCCU 2005) (MCRA Act 2006, Section 23) (Bank Companies Act 1991 (as amended), Sections 3, 44).
Microcredit organizations must pay an annual renewal fee (amount to be set by forthcoming rules) to maintain their certificate to operate a micro credit program (MCRA Act 2006, Section 12(1)(e). 16(2)).
"Cooperatives must provide annual report detailing cash accounts, balance sheet, profit and loss account, and a profit and loss appropriation account. Balance sheet must be published annually. Central- and national-level cooperative societies must also submit quarterly returns. MCRA requires submission of annual financial report, profit and loss accounts, and balance sheets (format and other rules will be prescribed in forthcoming regulations). Organizations must also submit reports upon demand by their financing agencies. MCRA also publishes list of certified microcredit organizations in the government gazette and publishes information re: suspension or termination of certificates in national and/or local newspapers (Rules 31, 63-64, 76, 79-80, cited in WOCCU 2005) (MCRA Act 2006, Sections 21-22).
All microcredit organizations will be covered under a Depositor Security Fund operated by the MCR Authority (according to forthcoming rules) (MCRA Act 2006, Section 19).
Non-profit institutions
NGO-MFIs
MCRA may conduct on-site or off-site inspections at any time (MCRA Act 2006, Section 23).
NGOs providing micro credit must pay an annual renewal fee (amount to be set by forthcoming rules) to maintain their certificate to operate a micro credit program (MCRA Act 2006, Section 12(1)(e). 16(2)).
"Cooperatives must provide annual report detailing cash accounts, balance sheet, profit and loss account, and a profit and loss appropriation account. Balance sheet must be published annually. Central- and national-level cooperative societies must also submit quarterly returns. MCRA requires submission of annual financial report, profit and loss accounts, and balance sheets (format and other rules will be prescribed in forthcoming regulations). Organizations must also submit reports upon demand by their financing agencies. MCRA also publishes list of certified microcredit organizations in the government gazette and publishes information re: suspension or termination of certificates in national and/or local newspapers (Rules 31, 63-64, 76, 79-80, cited in WOCCU 2005) (MCRA Act 2006, Sections 21-22).
All microcredit organizations will be covered under a Depositor Security Fund operated by the MCR Authority (according to forthcoming rules) (MCRA Act 2006, Section 19).
Security interests created in favor of microcredit organizations take priority over all other interests in the same property (MCRA Act 2006, Section 33).
