Microcredit Regulatory Authority

The MRA faces growing tension regarding allegations of non-transparent leadership appointments and policy shifts that may disadvantage smaller NGOs.

MRA was established under the Microcredit Regulatory Authority Act, 2006 (Act No. 32 of 2006), effective August 27, 2006, and operates under the Financial Institutions Division of the Ministry of Finance. The Governor of Bangladesh Bank serves as ex officio Chairman of the MRA Board; Prof. Mohammad Helal Uddin (University of Dhaka, Department of Economics) joined as Executive Vice Chairman on October 9, 2024. Headquarters is at Agargaon, Dhaka (new building inaugurated May 17, 2025 by Chief Adviser Prof. Muhammad Yunus). Sector size as of June 30, 2024 (most recent complete annual data from MRA): 724 licensed MFIs, 41.55 million members, 32.17 million borrowers (91% women), Tk 1,59,410 crore outstanding loans, Tk 68,591 crore member savings. An earlier Prothom Alo/TBS report cites 683 licensed institutions; the lower figure likely excludes newly licensed or re-licensed entities between reporting dates -- the April 2025 MRA publication (mra.portal.gov.bd) cites 724. The top 10 MFIs are BRAC, ASA, BURO Bangladesh, TMSS, SSS, Sajeda Foundation, Uddipan, Jagorani Chakra Foundation, Paddakhep Manobik Unnayan, and Shakti Foundation; together with Grameen Bank they account for 80-87% of outstanding loans and savings. Grameen Bank is NOT licensed by MRA: it is a statutory public bank established under the Grameen Bank Ordinance 1983, regulated by Bangladesh Bank, and operates outside the MRA framework. BRAC and ASA are the two largest NGO-MFIs under MRA supervision. Interest rate: first capped at 27% in 2010, reduced to 24% (flat/declining balance, effective rate) in 2019; MRA Act mandates biennial review. As of May 2026, the 24% ceiling remains in force with no gazetted reduction. The Microfinance Bank Ordinance 2026 (January 29) creates a new bank tier above the NGO-MFI layer; MRA will license these banks under a new division, but Bangladesh Bank will handle prudential supervision of any resulting banks -- a potentially complex dual-regulatory arrangement that remains contested.