The Microcredit Regulatory Authority (MRA), the supervisor of NGO microfinance institutions (MFIs) in Bangladesh, reportedly has advised MFIs to obtain permission by June 30 for sertvices offered other than microcredit. Failure to obtain permission by the deadline is to result in legal action against such MFIs. An MRA official explained that the reason for the new regulation is to “ensure that MFIs’ surplus funds are used in the targeted poverty alleviation purposes.”
As of 2012, 630 MFIs are registered with MRA. As of 2010, 30 microfinance institutions (MFIs) in Bangladesh reported to the US-based nonprofit Microfinance Information Exchange (MIX) an aggregate gross loan portfolio of USD 646 million outstanding to approximately 5 million active borrowers and total deposits of USD 274 million.
By Brendan Millan, Research Associate
About Microcredit Regulatory Authority (MRA): The Microcredit Regulatory Authority monitors and supervises microfinance operations of non-government organizations in Bangladesh. It was created by the government of the Peoples’ Republic of Bangladesh under the “Microcredit Regulatory Authority Act”. A license from the Authority is mandatory to operate microfinance services inBangladeshas an NGO. The Authority’s responsibilities include licensing microfinance operations, ensuring license compliance and enforcing sanctions.
Sources and Resources:
[1] The Financial Express: “MFIs Asked to Get Prior Permission before Running Microcredit Activities” by Rezaul Karim. http://www.thefinancialexpress-bd.com/more.php?news_id=130159&date=2012-05-20
MicroCapital.org story, May 19, 2012, “MICROCAPITAL BRIEF: Microcredit Regulatory Authority of Bangladesh Revokes Licenses of 12 Microfinance Institutions, to Deploy Observers to Others”, https://www.microcapital.org/microcapital-brief-microcredit-regulatory-authority-of-bangladesh-revokes-licenses-of-12-microfinance-institutions-to-deploy-observers-to-others/
MicroCapital.org story, March 6, 2012, “MICROCAPITAL BRIEF: Bangladeshi Microfinance Borrowers Earn $47m in Interest on Mandatory Savings; Microcredit Regulatory Authority to Boost Enforcement of Required Interest Payments by MFIs”, https://www.microcapital.org/microcapital-brief-bangladeshi-microfinance-borrowers-earn-47m-in-interest-on-mandatory-savings-microcredit-regulatory-authority-to-boost-enforcement-of-required-interest-payments-by-mfis/
MicroCapital Universe Profile: Microcredit Regulatory Authority (MRA),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Regulatory+Authority
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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