Guests hold copies of a book on institutionalizing micro finance at a ceremony held at
National Museum in Dhaka on Saturday, February 15, 2020 Dhaka Tribune
Rehman Sobhan pointed out that deinstitutionalization and non-uniformity of laws and regulations existed in the country’s financial institutions
Micro and macro finance sectors should not be considered separate for the sake of uniformity of laws and regulations in the financial institutions of the country.
Eminent economist and Centre for Policy Dialogue (CPD) Chairperson Professor Rehman Sobhan said this on Saturday.
He was addressing as chair a discussion and launching of a book at Bangladesh National Museum in the capital.
The book “Institutionalising Microfinance in Bangladesh: Players, Games and Outcomes” is written by Lila Rashid.
Rehman Sobhan pointed out that deinstitutionalization and non-uniformity of laws and regulations existed in the country’s financial institutions.
For example, he said, given that two people borrowed the same amount of loan from a bank, the two would be asked to repay the loan over varying periods of time.
One would be asked to repay it over five years while the other over 15 years (although interest rate was same), he said.
This variability in the payback period ultimately affected the amount of interest rate and undermined the credibility of the financial system, he said.
He called for the creation of a regulatory body at both micro and macro finance levels as the two sectors were…