20% of green financing must go to women entrepreneurs: Cenbank
The central bank also directs banks to allocate15% of their total CMSME loans to women entrepreneurs
The Bangladesh Bank has directed all banks and financial institutions to allocate 20% of their green financing to women entrepreneurs and 25% to cottage, micro, small, and medium enterprises (CMSMEs).
A circular was issued in this regard today (17 march) asking all banks and financial institutions to comply with this directive.
It also stated that 15% of total CMSME loans must be distributed to women entrepreneurs.
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Currently, banks are required to allocate 5% of their total loans to green financing.
The central bank emphasised that women entrepreneurship and the CMSME sector play a crucial role in Bangladesh's inclusive development and sustainable industrialisation.
To achieve the government's Sustainable Development Goals (SDGs), various initiatives have been undertaken to empower women, reduce gender disparity, and enhance their participation in the economy.
However, despite these efforts, the expected level of financing in the CMSME and women entrepreneurship sectors has not yet been achieved, the circular stated.
The central bank stressed that banks and financial institutions must play a vital role in increasing financing in these sectors to drive the country's economic growth.
