Policy Component overview

Access to finance remains one of the key challenges for small business in Bangladesh, despite various enabling policy initiatives undertaken by Bangladesh Bank and the Microcredit Regulatory Authority. The BFP-B  aims to reduce the risks and costs of financial institutions to improve access to finance for small businesses. Our Policy Component is working to remove regulatory obstacles and support innovation in the formal financial sector.

We are sponsoring independent technical analysis, bringing good practice from outside Bangladesh, and facilitating dialogue. The Policy Component is working closely with national stakeholders – regulators, policy makers and market actors – who will be the drivers of change. The Policy Component has prioritised 8 policy issues including the development of a National Financial Inclusion Strategy (NFIS) for Bangladesh. These policy issues have been approved by the BFP-B Policy Advisory Committee.

8 policy studies

  1. Diagnostics of Microenterprise Lending by MFIs in Bangladesh: Opportunities and Challenges
  2. Review the SME Credit- related policies of Bangladesh Bank: Identify areas of further improvement by focusing on MSE Finance
  3. Development of a Comprehensive National Financial Inclusion Strategy (NFIS) for Bangladesh
    NFIS Sectoral Studies:
    3a) Definition of Financial Inclusion for Bangladesh
    3b) Banking Sector Study
    3c) Microfinance Sector Study
    3d) Insurance Sector Study
    3e) Short demand-side study
  1. Mobile Financial Services for MSEs in Bangladesh: Prospects and challenges
  2. Cluster and Value Chain financing for MSEs in Bangladesh: Current practices and what can be done
  3. Innovative MSE Financing Products and Delivery Channels in Bangladesh: Opportunities and Challenges
  4. Feasibility Study on Transformation of MFIs into Regulated Microfinance Banks/Finance Company: Bangladesh Perspective
  5. Addressing Market Demand through Agent Banking: Lessons learnt

Policy component activities

  • Fostering Dialogue: Organising Policy Advisory Committee (PAC) and Policy Working Committee (PWC) meetings, task-oriented sub-committee meetings, stakeholders’ consultation sessions, policy dialogues, focus group discussions, conferences, seminars, and workshops
  • Research and Technical Assistance (TA): Identifying research areas relevant to policy issues, recruiting consultants (local / international) to conduct research studies, prepare a TA strategic plan for regulators.
  • Knowledge Management: Publishing study reports, policy briefs, newsletters, and annual reports. Disseminating publications to different stakeholders and upload them to the BFP-B website.
  • Advocacy and Communication: Organising seminars and workshops, and lobby for policy or regulatory reforms and promoting innovation.
  • Monitoring and Evaluation: Monitoring and evaluating implementation of policy or regulatory reforms and conducting surveys to understand their impact.