State of Microfinance in Bangladesh: What Do We Know?

shahid_khandakherThe current status of microfinance in Bangladesh is undoubtedly a very big issue in Bangladesh Recognizing its importance the Institute of Microfinance (InM) organized a special seminar titled “State of Microfinance in Bangladesh- What Do We Know?” at PKSF auditorium on the August 28, 2008. The key purpose of this seminar is to have a greater understanding of the current status of the microfinance organization of Bangladesh.

As key note speaker Dr. Shahid khandker discussed the achievements of microfinance as a financial intermediary and as a development agent. Dr. Khandker shows that the microfinance institutes of Bangladesh have achieved self sustainability and subsidy dependency have declined over time. He discussed the possibility of transformation of the microfinance into micro enterprise.

Dr. Khandker suggested that policy should be taken to ensure sustainability of both lenders and borrowers, covering the hard core poor, coping with rising material risks, converting of micro finance to micro enterprise and regulation & supervision of the MF institutes.
As Chair of the seminar, Prof. Wahiduddin Mahmud expressed the microfinance works as ladder to improve the position of the poor and move them into non poor section. Prof. M.A. Baqui Khalilly, Executive Director of InM also commented in the seminar regarding the current status of microfinance sector.

Prof. Wahiduddin Mahmud commented that Portfolio diversification will reduce the risk and improve the overall situation of the poor. Finally, he suggested for further research in this sector for better understanding of the problems and policy for remedy from the poverty disease.

The Institute for Inclusive Finance and Development (InM) is registered as an independent non-profit institution under the Societies Registration Act 1860.
The Institute works for developing the overall capacity of the financial sector and strengthening the links between the financial and real sectors through undertaking research, training, education, knowledge management and other programmes in priority areas including inclusive finance, microfinance, poverty and development.

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