The Microcredit Regulatory Authority (MRA) and the International Finance Corporation (IFC) have entered into a partnership for a project valued at approximately USD 350,000, aimed at strengthening the capabilities of microfinance institutions (MFIs) and regulatory bodies in Bangladesh.

This initiative will focus on promoting digital financial services (DFS) and increasing access to short- and medium-term housing loans within the microfinance sector. The agreement was formalized today at the MRA headquarters, where Professor Dr. Mohammad Helal Uddin, Executive Vice Chairman of MRA, and Mr. Mehdi Charqui, Manager (FIG Upstream and Advisory) for South Asia at IFC, signed the project document titled “Bangladesh Microfinance Sector Development (BMSD).” The ceremony was graced by Mr. Md Saeed Kutub, Additional Secretary, as the Guest of Honour, along with senior officials from the Ministry of Finance, Bangladesh Bank, prominent MFIs, journalists, and representatives from both MRA and IFC.

The project’s objective is to assist MFIs in digitizing their operations and to foster an environment conducive to delivering quality housing solutions to low-income communities through short- and medium-term loans. Additionally, it aims to enhance MRA’s internal capabilities and support the formulation of policies, roadmaps, and guidelines related to digital financial services and housing microfinance.

In 2023, MRA and IFC conducted a joint study titled “Microfinance Sector Development Diagnostic: Digital Transformation and the Offering of Financial Services and Micro-Housing by MFIs,” which provided essential insights and recommendations that underpin this new initiative.

Mr. Mehdi Charqui remarked during the event, “This collaboration between IFC and MRA combines global expertise with local insights, paving the way for greater financial inclusion and improved living standards at the grassroots level, especially for women.”