Improving the policy and regulatory environment
The BFP-B aims to improve the policy and regulatory environment for financial institutions, incentivising them to make long-term investments in growing their small business portfolio.
We do this by generating evidence and recommendations to build the case for regulatory change, improving sector coordination and building consensus between regulators and market actors to facilitate adoption of recommendations for policy change, and advising and assisting the Ministry of Finance and regulators to put into operation the changes.
Read our Landmark research studies
By 2020, we will have assisted the Ministry of Finance to draft the first National Financial Inclusion Strategy for Bangladesh. We will also support financial sector regulators to improve 6 regulations.
Together, we expect to indirectly increase contributions to reach at least 60,000 small businesses with around £70m financing.
We are generating evidence and communicating these to convincingly change the mind-set and perception of decision makers. Data and evidence are used to form new insights, frame issues in a new light, stimulate debates and generate actionable-recommendations for regulators.
BFP-B’s data and evidence stream cover eight themes critically relevant for small businesses and identified and formally agreed with regulators:
- Microenterprise Lending by MFIs
- SME Credit-related policies of Bangladesh Bank
- Development of a comprehensive National Financial Inclusion Strategy
- Cluster and Value Chain financing for MSEs
- Mobile Financial Services for MSEs
- Innovative MSE Financing Products and Delivery Channels
- Transformation of MFIs into Regulated Microfinance Banks/Finance Company
- Agent banking
Coordination and consensus-building
We are working with regulator and financial market actors to enable adoption of evidence-based recommendations for regulatory adjustment and change. We are working through structured forums and partnerships involving policy-makers, regulators, financial sector associations and though-leaders to bring about change.
These key voices in the financial sector are helping to disseminate policy research findings and recommendations through events, bring-in international good practices, and spur debate and consensus.
Key coordination partners include the Financial Institutions Division of Ministry of Finance, Bangladesh Bank, Microcredit Regulatory Authority (MRA), Insurance Development and Regulatory Authority (IDRA), Prime Minister’s Office, SME Foundation, Palli Karma-Sahayak Foundation (PKSF), Social Development Foundation, Association of Bankers Bangladesh (ABB), UN Capital Development Fund, Credit and Development Forum, International Network of Alternative Financial Institutions, and Bangladesh Institute of Bank Management.
We are advising and assisting the Ministry of Finance and financial sector regulators to prepare new policies and operationalise adopted recommendations for regulatory improvisation. This includes assistance for drafting the Bangladesh’s first National Financial Inclusion Strategy, drafting relevant regulatory guidelines and circulars, and providing best-standard expertise to advise on the drafting of detailed guidelines and circulars.