Bangladesh Bank has recently directed banks and non-bank financial institutions to allocate 20% of their environmentally friendly financing to women entrepreneurs. Additionally, 25% of loans in the cottage, micro, small, and medium enterprises (CMSME) sector must also be reserved for this purpose, with instructions for 15% of CMSME loans to be distributed specifically among women entrepreneurs.
On Monday, March 17, the Sustainable Finance Department of Bangladesh Bank sent this directive to the chief executives of banks and financial institutions. Currently, banks are required to distribute 5% of their total loans to environmentally friendly sectors.
The central bank’s directive emphasizes the vital contribution of the CMSME sector and women entrepreneurs to the country’s inclusive development and sustainable industrialization.
It is now the responsibility of banks and financial institutions to increase financing in the CMSME and women entrepreneurship sectors. According to the decision, 25% of environmentally friendly financing must be allocated to the CMSME sector, while 20% should go to women-led initiatives. Furthermore, 15% of loans in the CMSME sector will be specifically directed toward women entrepreneurs.
This initiative is expected to play a significant role in achieving the country’s economic growth and paving the way for women’s empowerment as entrepreneurs.
+ There are no comments
Add yours