Grameen Bank operation in question

Posted by BankInfo on Fri, Dec 24 2010 01:53 pm

Dhaka, Dec 23 (—A parliamentary watchdog has sought explanation why Grameen Bank is not yet being operated under the Microcredit Regulatory Act 2006.

"We've sought an explanation for Grameen Bank's operations from the finance ministry's banks and non-bank financial institution division," chairman of the standing committee on finance ministry A N H Mostafa Kamal told reporters on Thursday after a meeting of the committee.

He, however, refused to comment on the recent controversies over fund management saying that the government would probe the matter.

"The committee has been informed that a high-powered committee will investigate the matter and we'll comment only after the committee submits its report."

Replying to a query, Kamal said the committee would be formed within a few days.

He said the standing committee feels that microcredit operation in the country should be regulated properly. "The committee also believes that rules and regulations of the MRA [Microcredit Regulatory Authority] are weak to regulate the sector."

He added that the regulatory body's manpower should also be increased for strong monitoring activities. "The MRA needs to work at the country's grassroots-level."

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