Trend of Microcredit in Bangladesh: A Study on Government and Non-Government Institutions and Banks.

Abstract

The microcredit movement began as an action-research by Prof. Dr. Muhammad Yunus has quickly become a global phenomenon, attracting more than 100 million borrowers world-wide. This program started mid-eighties and their activities increased noticeably higher after 1990. Although non-banking institutions involved in micro finance activities in earlier now nationalized commercial banks, specialized banks and private commercial banks have also started this program in different forms. The study has found that the number of licensed microcredit institutions and their branches are incising year to year. Number of borrowers was 18.89 million in 2009 which become 23.11 million in 2016. In this period the amount of disbursed loan increased by 155.17% (BDT 306.72 billion to BDT 782.67 billion) which is a notable evidence for the growth of this sector. The micro financing of the nationalized and private commercial banks is also found in increasing trend. Up to 2002 the public commercial and specialized banks are distributed BDT 11237.19 crore and this cumulative amount is become BDT 32822.17 crore up to June 2016.

Keywords: Microcredit, Growth, Banks, Microfinance institutions.

DOI: 10.7176/JESD/10-3-11