The Financial Express

Central bank selects 'lead banks' to expedite CMSME loan disbursement

| Updated: January 27, 2021 10:53:25

Central bank selects 'lead banks' to expedite CMSME loan disbursement

The Bangladesh Bank has selected a 'lead bank' for each district headquarters across the country mainly to expedite loan disbursement meant for cottage, micro and small and medium enterprises (CMSMEs).

It means that each district will have a lead bank - either a private bank or a public bank - and the bank will organise meetings in the whole year up to December next. The bank will also share the findings to the central bank.

It is believed that the selection of a lead bank will ensure a hassle-free loan disbursement for the CMSMEs; such concept will also help create new entrepreneurs in the country.

The SME and Special Programme Department of the Bangladesh Bank on Sunday issued a circular in this regard.

It has selected the lead bank for all 64 districts of the country. Some state-owned banks will act as the lead bank while some private banks will also function as the lead bank in many districts.

The central bank in its order argued that the selection of lead banks would help attain many strategic goals.

It said the lead bank concept will facilitate loan distribution from the stimulus package meant for the CMSMEs. The government announced Tk 200 billion as a stimulus package but still a significant amount remains undisbursed.

Besides, the lead bank in collaboration with other banks and financial institutions in the respective district will organise views-exchange meetings with the entrepreneurs on how to expedite loan disbursement and create new entrepreneurs.

The lead bank will also work with the district administration monitoring team.

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