CA for Establishing Microcredit Bank

Chief Adviser Professor Muhammad Yunus on Saturday emphasised the need to establish a dedicated Microcredit Bank to provide collateral-free small loans for young entrepreneurs, calling microcredit the “real form of banking.”

“Microcredit has come this far—we must now think afresh. It should no longer remain an NGO. It’s time to establish a Microcredit Bank,” he said while inaugurating the newly constructed building of the Microcredit Regulatory Authority (MRA) in Agargaon.

Prof Yunus, the pioneer of the microcredit model and founder of Grameen Bank, proposed enacting a new law to create the Microcredit Bank. He insisted it should operate as a social business bank, not a conventional profit-making institution.

He clarified that, under the law, owners of the bank must not be allowed to extract profit, whereas borrowers would be entitled to benefit from the institution’s services.

Currently, microfinance institutions are allowed to collect savings only from their members and not from the general public. Prof Yunus said a full-fledged bank would expand access to financial services for the underprivileged.

He highlighted that the bank would help young people start businesses without needing collateral, reducing reliance on traditional jobs. “If they get capital, they will become entrepreneurs instead of chasing employment,” he added.

He also said it is the government's responsibility to create institutions that support the youth.

Recalling the founding principle of Grameen Bank—that every person is an entrepreneur—Prof Yunus noted that conventional banks lend against guarantees, whereas microcredit is based on trust in the borrower.

He pointed out that while public money has been looted from traditional banks, institutions like Grameen Bank operate with transparency and integrity.

“Microcredit is the real banking. People need to understand and embrace it,” he said.

He also praised the Microcredit Regulatory Authority for setting a positive example through transparent and responsible oversight of the sector.

Other speakers at the event included Finance Adviser Salehuddin Ahmed, Special Assistant to the Chief Adviser Dr Anisuzzaman Chowdhury, Bangladesh Bank Governor Ahsan H Mansur, Financial Institutions Division Secretary Nazma Mobarek, and MRA Executive Vice Chairman Prof Mohammed Helal Uddin.