Staff Reporter :
Chief Adviser Professor Dr Muhammad Yunus has called for the establishment of a dedicated ‘Microcredit Bank’ to promote youth entrepreneurship by offering collateral-free small loans.
Describing microcredit as the “real form of banking”, he urged policymakers to adopt a fresh approach that allows the sector to evolve beyond its current non-governmental framework.
“Microcredit has grown significantly over the years. It is time to think differently and create a Microcredit Bank. It has outgrown its form as an NGO and now needs to take the next step,” said Dr Yunus.
He made the remarks while inaugurating the new headquarters of the Microcredit Regulatory Authority (MRA) in Agargaon, Dhaka, on Saturday.
Finance Adviser Dr Salehuddin Ahmed, Chief Adviser’s Special Assistant Dr Anisuzzaman Chowdhury, Bangladesh Bank Governor Dr Ahsan H Mansur, Financial Institutions Division Secretary Nazma Mobarek, and MRA Executive Vice Chairman Professor Mohammed Helal Uddin were also present and spoke at the event.
As the chief guest, Dr Yunus-widely acclaimed as the pioneer of microcredit-proposed enacting a new and distinct ‘Microcredit Bank Act’ to legally establish the bank.
He highlighted the limitations faced by current microcredit organisations, which are permitted to collect savings only from their own members and not from the general public.
“It is time to establish a Microcredit Bank,” he said. “Once licensed, it must operate as a social business, not as a conventional profit-oriented financial institution.”
Dr Yunus emphasised that the proposed legal framework must prohibit profit distribution to owners or investors. “The borrowers may benefit, but investors should not receive profits,” he stated.
Reflecting on the founding principles of Grameen Bank, he reiterated his belief that every individual possesses entrepreneurial potential.
The proposed Microcredit Bank, he said, would provide the younger generation with access to capital without the need for collateral, enabling them to start businesses and achieve self-reliance.
“If young people are able to secure financing to launch their own enterprises, they will not need to chase jobs,” he said. “It is the responsibility of the government to build institutions that empower the youth.”
Contrasting microcredit with traditional banking, he remarked that conventional banks only lend against collateral, while Grameen Bank extends credit based on trust in the poor.
He also criticised the misuse of public funds in some commercial banks, underscoring Grameen Bank’s longstanding record of transparency.
“Microcredit represents the true essence of banking. People must recognise and embrace this,” he concluded.
Dr Yunus also lauded the MRA for its exemplary commitment to transparency and for playing a historic role in regulating and promoting microfinance in Bangladesh.
