Regulatory Alerts2022-08-14
Added
SMESPD Circular No. 05: Cluster financing in CMSME sector
The Bangladesh Bank mandates that scheduled banks and financial institutions allocate at least 10% of their CMSME net loan/investment portfolio to cluster financing by December 31, 2022, increasing to 12% by mid-2024. At least 50% of these cluster financing targets must be directed toward high-priority clusters such as agro-processing, RMG, ICT, leather, light engineering, and jute, while the remaining 50% may be allocated to other priority or general clusters. The circular defines clusters as groups of 50 or more enterprises within a 5-kilometer radius and establishes specific eligibility criteria, loan limits based on enterprise size, maximum tenors of five years, and reporting obligations for quarterly disbursement and recovery data.