MICROCAPITAL BRIEF: Islamic Microfinance Loan Activity in Bangladesh Grows to $565m, 450k Borrowers

The Bangladesh Bank (BB), the central bank of the country, has announced that Islamic microfinance loan activity in Bangladesh has increased from BDT 282 crore (USD 34.5 million) in 2009 to BDT 4,620 crore (USD 565 million) in December 2011, representing an increase from 0.93 percent to 8.38 percent of total Islamic financing. The number of borrowers has increased from 211,000 to 449,000 over the same period [1] [2].

For the year 2010, 29 microfinance institutions (MFIs) in Bangladesh report to the US-based nonprofit Microfinance Information Exchange (MIX) an aggregate gross loan portfolio of USD 2.6 billion outstanding to approximately 13.5 million borrowers and aggregate deposits of USD 2.2 billion.

By Brendan Millan, Research Associate

About Bangladesh Bank (BB): Established in 1972, Bangladesh Bank (BB) is the chief regulator of the country’s monetary and financial system. BB’s mission is to regulate reserves, to manage country’s monetary and credit system and to foster development of the country’s economy. As of December 2010, BB operates nine branches and has a total staff of 5,071. Atiur Rahman was appointed as Bank Governor in 2009 and still serves in that capacity as of 2012.

Sources and Resources:

[1] The Daily Star: “Islamic microcredit going great guns”, http://www.thedailystar.net/newDesign/news-details.php?nid=227109

[2] Bangladesh Bank: “Governor’s Speeches and Addresses: Session on ‘Islamic Finance: An Instrument for Poverty Alleviation.’”, http://www.bangladesh-bank.org/openpdf.php

MicroCapital.org Article, October 5, 2011, “Bangladesh Bank Issues Guidelines on Mobile Microfinance”, https://www.microcapital.org/microcapital-brief-bangladesh-bank-issues-guidelines-on-mobile-microfinance/

MicroCapital.org Article, March 21, 2011, “Bangladesh Bank (BB) Governor Atiur Rahman Calls for Microfinance Institutions (MFIs) to Ensure Transparency”, https://www.microcapital.org/microcapital-brief-bangladesh-bank-bb-governor-atiur-rahman-calls-for-microfinance-institutions-mfis-to-ensure-transparency-2/

MicroCapital.org Article, January 5, 2010, “Bangladesh Bank (BB) Governor to Target Inclusive Growth and Microfinance in Next Monetary Policy”, https://www.microcapital.org/microcapital-brief-bangladesh-bank-bb-governor-to-target-inclusive-growth-and-microfinance-in-next-monetary-policy/

MicroCapital Universe Profile: Bangladesh Bank (BB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangladesh+Bank+%28BB%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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