SMESPD Circular No. 02: Extending Credit Financial Services in favour of Fresh Women Entrepreneurs in cottage, Micro & Small sector

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. www.bb.org.bd

SME and Special Programs Department (Women Entrepreneurs Development Unit)

SMESPD Circular No. 2 Date: 08 April 2015 25 Chaitra 1421

Managing Director / Chief Executive All Scheduled Banks and Non-Bank Financial Institutions of Bangladesh.

Regarding the provision of credit/financial services in favour of new women entrepreneurs in the cottage, micro, and small sectors.

Dear Sir,

In order to ensure the economic liberation and empowerment of women and greater accessibility in the institutional financing system, and with the aim of increasing the growth of credit and the number of entrepreneurs in favour of women entrepreneurs, particularly new women entrepreneurs, in the banking sector, Bangladesh Bank has been taking various steps and activities. In continuation of this, with the objective of further strengthening and accelerating women's empowerment and economic development, the following instructions are being issued:

(1) Every branch of all banks/non-bank financial institutions must identify at least 03 (three) women or women entrepreneurs in the area under the branch's jurisdiction who are willing to take up entrepreneurship and have not previously taken any kind of credit from any bank or non-bank financial institution. However, if this number is higher, the bank will be commended.

(2) To enhance the capacity of selected women entrepreneurs in selecting industry/service/business activities of their choice, capital collection and management, business operation, marketing of produced goods or services, opening accounts and transaction methods with banks, and other overall matters, banks/non-bank financial institutions will take the initiative to provide training on their own or, if necessary, jointly by a few banks/non-bank financial institutions at the regional level. In this regard, if necessary, banks/non-bank financial institutions may take assistance from similar organizations such as BSME, SME Foundation, Department of Women's Affairs, National Women's Organization, Department of Youth Development, Small and Cottage Industries Training Institute (SCITI), various business chambers/associations, women entrepreneurs chambers/associations. Necessary Memorandum of Understanding (MoU) may be signed between the concerned parties for this purpose.

(3) In addition to the normal credit activities of banks and non-bank financial institutions, every branch of all banks and non-bank financial institutions must provide credit in the cottage, micro, or small sector to at least 01 (one) out of the selected 03 (three) trained new women entrepreneurs annually. If this number is higher, the bank will be commended. Under this program, credit may be provided to women entrepreneurs on a group basis as per the policy guidelines of Bangladesh Bank, if necessary. The bank will also take steps to meet the other financial service needs of the entrepreneurs.

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(4) The matter of providing refinancing facilities on a priority basis from the Refinancing Fund of Bangladesh Bank in accordance with the rules against the credit provided to new women entrepreneurs under this circular will be considered.

(5) The success of this program will be reflected in the SME activities success scoring of the CAMELS Rating of banks/non-bank financial institutions, and

(6) The progress of this program must be informed to the Women Entrepreneurs Development Unit of the 'SME and Special Programs Department' of Bangladesh Bank on a quarterly basis.

This circular will come into force immediately.

Please acknowledge receipt.

Yours faithfully,

(Signature) (Swapan Kumar Roy) General Manager Phone: 9530502