SMESPD Circular Letter No. 04: Regarding target and allocations of sector-wise loans for CMSME Entrepreneurs

Bangladesh Bank
Head Office
Motijheel, Dhaka-1000
Bangladesh.

SMESPD Circular Letter No. 04
Date:
02 Chaitra 1429
16 March 2023

Managing Directors/Chief Executives
All Scheduled Banks and Financial Institutions operating in Bangladesh

Regarding target and allocations of sector-wise loans for Cottage, Micro, Small and Medium Enterprises.

Reference is drawn to your attention to SMESPD Circular No. 02 dated 05 September 2019 on the subject cited above.

2. In order to ensure consistency among various financial statements prepared by banks and financial institutions and various reports submitted to Bangladesh Bank, paragraph 3 of the aforementioned circular is hereby replaced as follows:

Banks and financial institutions shall inform the SME & Special Programs Department of their CMSME loan targets based on the loan and advance position of the previous year, by the last working day of January each year. The volume of CMSME loans and advances within the loan and advance position of banks and financial institutions shall be increased by at least 1% annually and raised to at least 25% by the middle of 2024. The achieved target rates by the end of 2024 shall be as follows:

Subject	Achieved Target Rate by the end of 2024
CMSME Loans and Advances	25% of Total Loans and Advances
Volume of Loans and Advances for Cottage, Micro and Small Enterprises	50% of CMSME Loans and Advances
Volume of Loans and Advances for Women Entrepreneurs	15% of CMSME Loans and Advances
Sector-wise Distribution of CMSME Loans and Advances	At least 40% in Productive Industries, at least 25% in Service Industries, and a maximum of 35% in Trade

3. Apart from this, the other instructions contained in the aforementioned circular shall remain unchanged.

4. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991 and Section 18 of the Financial Institutions Act, 1993.

5. These instructions shall take immediate effect.

Yours faithfully,

(Mohammad Ashiqur Rahman)
Director (SMESPD)
Phone: 9530502