Microcredit Regulatory Authority and IFC sign deal to enhance housing loan facilities

To enhance the capacity of microfinance institutions and the Microcredit Regulatory Authority (MRA) in providing short- and medium-term housing loans, the MRA and the International Finance Corporation (IFC) have signed a project agreement.

Professor Dr Mohammad Helal Uddin, Executive Vice Chairman of MRA, and Mehdi Cherkaoui, South Asia Manager (FIG Upstream and Advisory) of IFC, signed the project document titled "Bangladesh Microfinance Sector Development (BMSD)" at the MRA headquarters today (16 April).

The newly signed project will not only strengthen MRA's internal capacities but also lead to the formulation of policies, roadmaps, and guidelines on digital financial services and housing microfinance, a press release said.

In 2023, MRA and IFC jointly conducted a research study titled "Microfinance Sector Development Diagnostic: Digital Transformation and the Offering of Financial Services and Micro-Housing by MFIs." The findings and recommendations of that study have served as a key foundation for shaping the framework of this project.

Speaking at the signing ceremony, Mehdi Chergui, South Asia Manager (FIG Upstream and Advisory) at IFC, said, 'Collaboration between IFC and MRA represents the fusion of global expertise and local insight — a synergy that has the power to transform lives at the grassroots level with a special focus on women.'

Professor Dr Mohammad Helal Uddin, Executive Vice Chairman of MRA, remarked, "Today's agreement between MRA and IFC marks a significant milestone in guiding Bangladesh's microfinance sector toward a tech-driven, inclusive, and responsive financial ecosystem. 

"As the regulatory body, MRA remains committed to playing a proactive and visionary role through supportive policymaking, facilitating pilot programs, and building internal capacities to monitor this rapidly evolving sector."

As part of MRA's human resource and institutional development, the project will arrange exposure visits for MRA officials, workshops on digital maturity tools, and programs on digital transformation and financial literacy. In addition, specialised training on housing microfinance will be organised. 

The project is planned for a duration of two and a half years, with an estimated total budget of $350,000.

Md Saeed Kutub, Additional Secretary, was present at the event as the guest of honour. Presided over by Professor Dr Mohammad Helal Uddin, the ceremony was attended by senior officials from the Ministry of Finance, Bangladesh Bank, CEOs and representatives of microfinance institutions, members of the media, and officials from both IFC and MRA.