Annual Benchmark Report for Bangladesh Now Available!
Over the years Bangladesh has seen good development in financial inclusion which addresses both access and usage of financial products. Many policies were formed which include the introduction of mobile financial services, banks to open at least fifty percent of their branches in rural areas, the introduction of agent-based banking to provide banking services in the remotest areas, floors on credit to the agricultural and rural sectors backed by credit refinancing lines on concessional terms, support to SMEs and women entrepreneurs etc. The majority of the credit to such changes goes to the microfinance institutions operating in the country due to their wide outreach and interest in social development.
The interest rates charged by FSPs are much lower than those charged by informal money lenders; they still have room to reduce rates further while realizing sufficient returns. In 2011, Bangladesh’s Microcredit Regulatory Authority (MRA) capped the interest rate that MFIs can charge as high as 27 percent; however, many poor households still could not afford to borrow at this rate. Lowering this interest rates cap was expected to increase the number of poor households who are now able to take advantage of the benefits of microfinance programs.
Banks, credit unions/co-operative have registered a loss in FY 2015 whereas NGOs have registered slightly improved profit hence the return on asset and return on equity has also slightly improved as compared to FY 2014.
This report includes key financial and operational indicators that provide a country overview, indicator level performance, and institutional details. The indicators include a range of performance variables pertaining to outreach, institutional characteristics, financing structure, financial performance, revenue, expenses, efficiency, productivity, risk, and liquidity. The numbers are presented at the aggregate level, peer-group level, and individual FSPs level. The report also compares the FY 2015 performance against the previous fiscal year and provides the growth or decline rate for each of the indicators.
Read the full report: Annual Benchmark Report for Bangladesh FY2015.
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