Dhaka, Bangladesh (BBN)- BRAC Bank has initiated with the Center for Corporate Governance and Finance Studies (CCGFS) of Dhaka University a project to carry out a research to measure the socio-economic impact of SME Financing.
The research theme will include people, planet and profit under the 'Five Action Track' Goals of Global Alliance of Banking on Values.
The 'Five Action Track Goals' of GABV was agreed by the members in the global conference held in Dhaka in April, 2010. BRAC Bank Limited is a founding member of GABV, an international consortium of sustainable banks who believe in value based banking.
An agreement was signed between CCGFS and BRAC Bank, country's leading SME Bank, to this effect at the Bank's office in Dhaka on Wednesday.
Mohammad Mamdudur Rashid, Deputy Managing Director of BRAC Bank Limited and Professor M. A. Baqui Khalily, Chairman of Center for Corporate Governance and Finance Studies (CCGFS), Dhaka University signed the agreement on behalf of their respective organizations. Mr. Muhammad A. (Rumee) Ali, Chairman of BRAC Bank was also present.
As per the agreement between BRAC Bank and CCGFS, the latter will develop an internationally replicable "impact measurement metrics" - i.e. standard indicators - to measure the impact on the SME Customers in terms of financial, social and environmental sustainability.
These 'standard indicators' will be presented at the Global Conference of GABV in Lima, Peru in 2011. This will then be adopted as model for similar research in other parts of the world among GABV members in North and South America, Europe, Asia and Australia.
Traditionally, success of banks has solely been measured on profits. Few banks, however, have proved to be in business for a greater reason. SME Financing has been one model that has become popular after BRAC Bank - country's leading SME Bank - developed and implemented it successfully.
However, the extent to which such financing has impacted the individual, society, the economy and the environment remains unknown. CCGFS of Dhaka University and BRAC Bank will work together to research this vital aspect of banking, for the first time, in the history of our banking industry
BBN/SSR/AD-04Nov10-10:01 am (BST)