The central bank has sought cooperation from the Deputy Commissioners (DCs) of 65 districts to find out SME entrepreneurs and industry cluster across the country for the development of the sector, official sources said.

The Bangladesh Bank (BB) recently sent a letter to the DCs to take necessary steps in this regard.

General Manager (GM) of SME and Special Programmes Department Sukamal Sinha Choudhury told the FE that the central bank has been working relentlessly for increasing the country's financial inclusion.

As part of the BB's initiatives, "we have requested all the DCs for more financial inclusion for further positive growth."

"Identifying the SME entrepreneurs and industry cluster are very important to improve the sector," said the letter.

The DCs are the key persons in any district and also chief of district agricultural credit committee. So they will be able to select the genuine SME entrepreneurs easily, said the GM.

The letter further said, "We (BB) are drawing your attention to inform chambers, associations, women chambers, SME and women entrepreneurs within your jurisdiction about the SME credit and Japan International Cooperation Agency (JICA) fund."

The letter also said "you can discuss on SME financing in Agricultural Committee meeting at your own as head of the committee".

"We hope that your cooperation and help in this regard will march forward the initiative," the BB letter mentioned.

In the meantime, in a bid to improve the fund flow to some segments in the small and medium enterprise (SME) sector, the central bank has asked all banks and non-banking financial institutions (NBFIs) to attach top priority to cluster financing for the rest of the period of current calendar year, A BB official said.

The BB is working to enhance funding to manufacturing, service and woman entrepreneur segments through cluster financing, as their access to SME loans was far off the mark, BB sources said.

By following the cluster financing model, the BB aims to support small and medium-scale businesses for the export purpose and thus intensify SME activities at the field level.

The BB GM said, "In the current financial year we have planned to increase the field level activities by ensuring relationship banking to smaller SMEs."

"Disbursement of SME loans is increasing but we need to give more importance to identifying real entrepreneurs and woman entrepreneurs of SME across the country." the BB SME official said.

"In the present context, cluster financing is to be given the top priority. Monitoring and supervision at the branch level need to be strengthened so the entrepreneurs setting up cottage, small and medium enterprises are selected and no genuine entrepreneurs are deprived," the BB official said.

The disbursement of SME loans during January-June of this year was Tk 322.55 billion or 55.26 per cent of the annual target, according to the central bank statistics. The figures also showed that the overall SME financing kept going up over the years.

News: The Daily Financial Express/Bangladesh/17th-Oct-12