SFD Circular Letter No. 02: Target Fixation of Green CMSME and Women Entrepreneur Sector Finance

Bangladesh Bank Head Office Dhaka. Sustainable Finance Department SFD Circular Letter No.: 2 Date: 17 March, 2025

03 Chaitra, 1431 Managing Director/Chief Executive Officer All Scheduled Banks and Finance Companies Operating in Bangladesh Dear Sir, Re: Target Fixation of Green CMSME and Women Entrepreneur Sector Finance.

Reference is invited to SFD Circular Letter No. 02 dated 06 November 2024 on the above subject.

2. The contribution of the Cottage, Micro, Small and Medium (CMSME) sector alongside the women entrepreneur sector to the indigenous industrialization and sustainable development of Bangladesh is undeniable. Various indices have been adopted to empower women, prevent gender discrimination, and ensure women's participation in the CMSME sector alongside the government's declared 'Smart Bangladesh' and 'Women Entrepreneurship Development' agenda goals. Nevertheless, the desired level of credit has not been achieved in the CMSME and women entrepreneur sectors. The role of banks and finance companies is crucial in increasing credit in these sectors for the economic growth of the country.

3. Now, it has been decided that: (a) To increase credit in the CMSME and women entrepreneur sectors, 25% of the 5% target allocated for green credit (environmentally friendly credit) must be allocated to the CMSME sector (of which 15% is for the women entrepreneur sector) and 20% to the women entrepreneur sector. (b) Banks and finance companies must ensure the credit at the specified rates mentioned above in the relevant year.

4. This directive is issued under the powers granted by Section 45 of the Bank Company Act, 1991, and Section 41(2)(d) of the Finance Company Act, 2023, and shall take immediate effect.

Yours faithfully, (Ch. Duryodhan Ali) Director (SFD) Phone: 9530320 E-mail: pdc.sfd@bb.org.bd