• Wednesday, Nov 20, 2019
  • Last Update : 02:18 am

Government wants BB to regulate GB

  • Published at 08:29 pm August 17th, 2013
Government wants BB to regulate GB

The government wants to run the Nobel Peace Prize-winning microcredit lender Grameen Bank (GB) under the supervision of the Bangladesh Bank (BB) as the microcredit regulatory authority is weak on regulatory matters, official sources said.

Neither the central bank nor the microcredit regulatory authority presently controls the Grameen Bank and so an authority is needed to regulate it, Banking Secretary M Aslam Alam said on Thursday.

“The regulation of the microcredit regulatory authority is weak compared to the Bangladesh Bank and we have also waited for the GB Commission’s final report before we take a decision,” he said.

Sources in the banking division said the three-member Grameen Bank Commission planned to submit its final report on the bank and its 48 associated organisations to the government this week.

Chairman of the Grameen Bank Commission Mamun-ur-Rashid last month said the government would decide who would regulate the microcredit lender.

“Our advice to the government is that it can split the bank in 19 which will be controlled by the Grameen Bank headquarters and women shareholders will be directors of the specialised bank,” he said.

As for the authorities of the bank, the government can create a new body or Bangladesh Bank or the microcredit regulatory authority can run it, he pointed out.

Mahfuzur Rahman, executive director and spokesperson of the Bangladesh Bank, said the central bank will comply with the decision if the government gives it the responsibility to regulate the Grameen Bank.

Executive Vice-chairman of the Microcredit Regulatory Authority Khandakar Muzharul Haque yesterday said the issue of regulating the Grameen Bank will be incorporated into the proposed Grameen Bank law 2013 after decision from the government high-ups.

“Capacity of the Microcredit Regulatory Authority will be enhanced to regulate the Grameen Bank if the government wants to regulate the bank by the microcredit regulatory authority,” he added.