News Desk

Chief Adviser Professor Muhammad Yunus on Saturday stressed the need for establishing a dedicated ‘Microcredit Bank’ to enable microcredit to play a more significant role within the formal banking system, moving beyond its current NGO-style framework.

"We have to think about something new - establishment of Microcredit Bank - as the success of microcredit reached a new height," he said.

Prof Yunus said microcredit is now seen as an NGO, and to become a full-fledged bank, it is necessary to have a transition from NGO to bank.  "Clearly, it will have to be a bank, and we need a separate banking law," he said.

Prof Yunus said currently a microcredit organisation can collect deposits from its members only and this needs to be expanded to give a real shape as a bank.

Highlighting the importance of microcredit, he laid emphasis on giving more focus on the future banking system based on trust, stressing that it would be the future-oriented real baking system.

"It's the appropriate time to talk about the issue," he said, adding that the banks, which were considered as the real banks have disappeared today with looting public money, but the microcredit exists with a transparent base.

Stressing the need for paying attention to real banks, Prof Yunus said they saw people busy with fake banks.

The Chief Adviser made the remarks while inaugurating the Microcredit Regulatory Authority building in the city's Agargaon area. "I feel good to be here today and meet the old friends," Prof Yunus said.

Created in 1976 in Bangladesh, the Grameen Bank uses microcredit to fight against poverty.

By creating a banking system based on trust and creativity, Prof Yunus breathed new life into traditional banking mechanisms.