MICROCAPITAL BRIEF: Bangladesh Bank (BB) Governor Atiur Rahman Calls for Microfinance Institutions (MFIs) to Ensure Transparency

Bangladesh Bank (BB) Governor Atiur Rahman has reportedly called upon microfinance institutions (MFIs) to ensure transparency in their lending operations [1]. Dr Rahman, who also serves as the Chairman of the Microcredit Regulatory Authority (MRA), Bangladesh’s primary regulator over microfinance activities, reportedly made the following statement at the opening of an MRA-organized training workshop on loan amortization for the personnel of microfinance institutions (MFIs): “The main task of the Microcredit Regulatory Authority is to keep an eye on the interest rate, [and] other charges relevant to loan[s] and services extended by the MFIs. The MFIs must inform the MRA about their operational and administrative costs so that the borrowers are not confused [1].”

This statement comes ahead of the implementation of the 2010 Microcredit Regulatory Authority (MRA) Rules, which will take effect in July 2011 [1].

About Bangladesh Bank (BB): Bangladesh Bank (BB) is the chief regulator of the country’s monetary and financial system. Established in 1972, BB’s mission is to regulate reserves, to manage country’s monetary and credit system, and foster development of the country’s economy. As of December 2010, BB operates nine branches and has a total staff of 5071. Appointed as Bank Governor in 2009, Atiur Rahman directs and controls the affairs of the Bank. BB is the chief regulator of the country?s monetary and financial system. Established in 1972, BB?s mission is to regulate reserves, to manage country’s monetary and credit system, and 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 2011.

About Microcredit Regulatory Authority (MRA): Microcredit Regulatory Authority (MRA) is the primary regulator of the activities of all microfinance institutions (MFIs). MRA has three primary functions: to license MFIs, to supervise MFIs for compliance with licensing requirements and to enforce sanctions against non-compliance. In addition, MRA monitors microfinance activity through audits and addresses customer complaints. The Board of Directors consists of heads of executive levels of government, including the governor of Bangladesh Bank (BB), Dr Atiur Rahman, who serves as Chairman.

[1] The Financial Express, March 10, 2011, “Atiur asks MFIs to make microcredit transparent”,http://www.thefinancialexpress-bd.com/more.php?news_id=128653&date=2011-03-10

MicroCapital.org Article, March 2, 2011, “Yunus Continues as Grameen Bank Managing Director after Bangladesh Bank Asks Him to Step Down”, https://www.microcapital.org/microcapital-brief-yunus-continues-as-grameen-bank-managing-director-after-bangladesh-bank-asks-him-to-step-down/

MicroCapital.org Article, March 8, 2011, “Bangladeshi Court Confirms Central Bank Decision to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, https://www.microcapital.org/microcapital-brief-bangladeshi-court-confirms-central-bank-decision-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital.org Article, February 15, 2011, “Bangladeshi Government Asks Yunus to Step Down as Director of Grameen Bank”, https://www.microcapital.org/microcapital-brief-bangladeshi-government-asks-yunus-to-step-down-as-director-of-grameen-bank/

MicroCapital.org Article, October 15, 2010, “Interest Rates Charged by Bangladeshi Microfinance Institutions (MFIs) to be Capped”, https://www.microcapital.org/microcapital-brief-interest-rates-charged-by-bangladeshi-microfinance-institutions-mfis-to-be-capped/

MicroCapital.org Artcile, August 11, 2010, “Microcredit Regulatory Authority of Bangladesh Will Soon Finalize Microfinance Lending Rates”, https://www.microcapital.org/microcapital-brief-microcredit-regulatory-authority-of-bangladesh-will-soon-finalize-microfinance-lending-rates/

MicroCapital. Org Artcile, April 13, 2010, “Government of Bangladesh to Limit Interest Rates for Microfinance Institutions (MFIs)”, https://www.microcapital.org/microcapital-brief-government-of-bangladesh-to-limit-interest-rates-for-microfinance-institutions-mfis/#more-4660

MicroCapital.org Article, March 16, 2010, “Microcredit Regulation Authority of Bangladesh to Make Public the Interest Rates Charged by Microfinance Institutions (MFIs)”, https://www.microcapital.org/microcapital-brief-microcredit-regulation-authority-of-bangladesh-to-make-public-the-interest-rates-charged-by-microfinance-institutions-mfis/

MicroCapital.org Article, January 5, 2010, “Bangladesh Bank Governor Atiur Rahman Proposes Uniform Interest Rates to Achieve Transparency”, https://www.microcapital.org/microcapital-brief-bangladesh-bank-governor-atiur-rahman-proposes-uniform-interest-rates-to-achieve-transparency/

MicrCapital.org Article, May 6, 2009, “Bangladesh Microcredit Regulatory Agency (MRA) Limits Interest Rates for Microfinance Institutions”, https://www.microcapital.org/microcapital-story-bangladesh-microcredit-regulatory-agency-mra-limits-interest-rates-for-microfinance-institutions/

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

MicroCapital’s Microfinance Universe: Microcredit Regulatory Authority (MRA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microcredit+Regulatory+Authority+%28MRA%29

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

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