Banks and non-bank financial institutions must allocate 20% of their green financing to women entrepreneurs.
Additionally, 25% of loans must be disbursed in the Cottage, Micro, Small, and Medium Enterprises (CMSME) sector. Furthermore, 15% of CMSME loans must be distributed among women entrepreneurs.
On Monday (March 17), the Sustainable Finance Department of Bangladesh Bank issued this directive and sent it to the chief executives of banks and financial institutions.
Currently, banks are required to allocate 5% of their total loans to green financing.
According to the directive from the central bank, the contribution of the CMSME sector and women entrepreneurs is crucial for the country’s inclusive development and sustainable industrialization.
Various initiatives have been undertaken to empower women in the economy, reduce gender disparity, and enhance women's participation in line with the Sustainable Development Goals (SDGs) set by the government.
However, the desired level of financing in the CMSME sector and for women entrepreneurs has not yet been achieved. Increasing financing in these sectors is essential for the country's economic growth, and banks and financial institutions play a significant role in this regard.
It has been decided that banks and financial institutions must ensure that 25% of their green financing is allocated to the CMSME sector and 20% to women entrepreneurs. Additionally, 15% of CMSME loans must be directed toward women entrepreneurs.
