Dhaka, Bangladesh (BBN)– Bangladesh’s overall small and medium enterprise (SME) credit disbursement grew by more than 24 per cent in the first quarter (Q1) of 2016 following strengthening of monitoring and supervision by the Bangladesh Bank (BB).
All scheduled banks and non-banking financial institutions (NBFIs) disbursed BDT 325.19 billion in the January-March period of this year, compared to BDT 261.40 billion in the same period of the previous year, according to the central bank’s latest statistics.
The loans were given to more than 60 SME sub- sectors such as light engineering, handicraft, flower, fish processing, handloom, rice mill, jamdani, Rajshahi silk, khadi, bio-gas and compost fertiliser.
“The central bank is working continuously to achieve the SME loan disbursement target by the end of this year,” a BB senior official told BBN in Dhaka.
The central bank of Bangladesh earlier set the SME credit disbursement target at BDT 1,135.03 billion for this calendar year, marking 8.53 per cent growth over that of previous year.
On the other hand, the recovery of SME loans rose to Tk 368.22 billion in the Q1 of 2016 from Tk 256.07 billion in the same period of the previous year, the BB data showed.
Currently, the BB is maintaining a three-tier monitoring system to ensure growth of the SME sector in Bangladesh.
Under the monitoring system, the BB headquarters, its ten branch offices across the country and head offices of all commercial banks are reviewing the implementation of SME credit programmes regularly.