Community Bank signs deal with Bangladesh Bank for loan to small savers

Community Bank Bangladesh PLC has signed a participatory agreement with Bangladesh Bank (BB) under the Financial Inclusion Credit Guarantee Scheme (FICGS).

Muhammad Nazmul Haque, director of the Credit Guarantee Department (CGD) of Bangladesh Bank, and Kimiwa Saddat, managing director (current charge) of Community Bank Bangladesh PLC, signed the agreement at the BB headquarters in Motijheel, Dhaka today, according to a press release.

Md Sawkatul Alam, executive director of the central bank, attended the programme.

The agreement is a key initiative aimed at extending credit facilities to Tk 10/50/100 account holders, marginal and landless farmers, low-income professionals, school banking account holders, and small business owners, who often face difficulties in accessing formal financing due to inadequate collateral.

The FICGS seeks to promote inclusive financing by providing credit guarantees against eligible loans, thereby reducing the risk exposure of participating banks and financial institutions.

Mohammad Imam Hossain, additional director of the BB; Zobaida Afroze, additional director of the CGD; Md Ariful Islam, head of corporate banking and head of business (branch) of Community Bank Bangladesh PLC; Md Mamun ur Rahman, head of ADC and head of MD's coordination team; and Sharif Hasan Mamun, head of SME and agriculture, along with other senior officials of Bangladesh Bank, were also present.