• Monday, Jan 24, 2022
  • Last Update : 03:32 am

Experts: Banks, MFIs should collaborate for financial inclusion

  • Published at 07:02 pm August 23rd, 2021
MFI Brac Bank webinar
Courtesy

Also discussed the effect of Covid-19 on the MFI industry, and also shed light on the challenges

Financial sector experts suggested that banks and microfinance institutes (MFIs) together would pave a better way to achieve the goal of financial inclusion in Bangladesh.

They made this remark at a webinar organized by Brac Bank, titled "Impact of the Covid-19 Pandemic on the Microfinance Industry” recently, said a press release.

Qazi Kholiquzzaman Ahmad, chairman of Palli Karma-Sahayak Foundation (PKSF), and Md Fashiullah, executive vice chairman of the Microcredit Regulatory Authority (MRA), joined the discussion as guests.

Murshed Alam Sarker, executive director of People's Oriented Program Implementation (POPI) and chairman of CDF; Humaira Islam, executive director of Shakti Foundation for Disadvantage Women; Selim RF Hussain, managing director and CEO of Brac Bank; and Syed Abdul Momen, deputy managing director and head of SME Banking of Brac Bank; also participated in the webinar as panel speakers.

The speakers discussed the effect of Covid-19 on the MFI industry, and also shed light on the challenges, and ways forward to ensure the sustainability of this sector.

They all recommended that banks and MFIs should aim for more collaboration to elevate financial inclusion.

Qazi Kholiquzzaman Ahmad emphasized that SMEs and CMEs should be differentiated and not grouped under CMSME as their needs and models are different.

"Our regulatory authorities have to be realistic to be able to move in the right direction in policymaking. MFIs are the only institutions that can reach the small family economies," he added.

The MFI sector is a major player in the country's economy, with a transaction volume of around Tk150,000 crore a year. Banks contribute around 20% in this sector, said CDF chairman Md Fashiullah.

"However, we must also focus on digitization as it will be a key solution to MFI financing issues," he added.

Banks, as one of the prime sources of financing, should also consider the bottom of the pyramid of the MFI sector and create partnerships to help them recover from this situation, said Humaira Islam.

Regulatory authorities should redesign the pre-pandemic parameters to evaluate the MFIs, and guide them to maintain an efficient balance sheet, she added.

MFIs are the bank of the extremely poor; hence they should be included under emergency services during challenging times such as a lockdown, said Murshed Alam Sarker.

"Brac Bank is the largest collateral-free financier in the country, and around 52% of our customers belong to the small and medium sector. We are already working with some MFIs of various sizes and we will be happy to extend our collaborations," said its MD Selim RF Hussain.

50
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail