Brief of SMESPD:
SME & Special Programmes Department (SME&SPD) is one of the significant outcomes of Bangladesh Bank (BB)’s policy paradigm shift to add financial inclusion to its traditional goals of prudential regulation & financial stability. BB identified Cottage, Micro, Small & Medium Enterprises (CMSMEs) as a top priority sector for rapid industrialization, employment generation, poverty reduction, gender equality & overall economic growth of Bangladesh. This department started its journey in December, 2009 towards the development of CMSMEs in Bangladesh by improving the existing environment in the banking sector through regulatory & policy interventions. SME & Special Programmes Department is playing a pivotal role to ensure country’s inclusive & sustainable economic growth through CMSMEs development with a special focus on financially excluded, unbanked people & women entrepreneurs.
To develop the sector, this department provides refinance facilities to Banks & Financial Institutions at a relatively cheap rate against their financing to CMSMEs. Currently, Bangladesh Bank is providing refinance facilities to banks and financial institutions from Bangladesh Bank Fund, Revolving Fund Account of JICA assisted FSPDSME Fund & Urban Building Safety Project, Small Enterprise Refinance Scheme, Agro-based Product Processing Industries Fund, New Entrepreneurs Fund and Islamic Shariah Fund.
A target based lending to CMSMEs has been initiated since the inception of this department. This intervention for engendering SME finance has been declared as international best practice for SME financing by Alliance for Financial Inclusion (AFI) in 2014. All banks and financial institutions have been disbursing credit to CMSMEs following their indicative target set on a calendar year (Jan-Dec) basis. SMESPD has been taking multifaceted initiatives for developing the Cottage, Micro, Small and Medium Enterprises (CMSMEs) including women entrepreneurship development all over the country.
To expedite country’s inclusive economic growth by eradicating poverty, ensuring gender equality, empowering women and generating wide employment opportunities through expanding and strengthening the scope of Cottage, Micro, Small and Medium Enterprises (CMSMEs).
To ensure countries inclusive financial growth, SMESPD formulates effective Policy & Guidelines, monitors & supervises CMSME refinance activities of Banks/NBFIs, organizes promotional activities and maintains & strengthens liaison with other stakeholders.
Functions of SMESPD
1. Formulating effective policies and guidelines for sustainable development of the CMSME sector.
2. Monitoring the loans and advances extended to the CMSME sector.
3. To expedite the women empowerment of the country conducting women entrepreneurship development activities, providing financial facilities on easy terms & conditions to women entrepreneurs with a view to increasing women’s participation in the mainstream economy.
4. Ensuring access to “Institutional Financial System” for the marginal, small and new entrepreneurs from rural and urban areas, socially underprivileged, neglected, handicapped, ethnic and third gender entrepreneurs.
5. Carrying out refinance/pre-finance schemes with financial assistance from the Government, Bangladesh Bank own source and different development agencies with a view to encouraging the banks and financial institutions to invest in the CMSME sector.
6. Identifying the challenges of CMSME sector through meetings, seminars & workshops with entrepreneurs and taking effective measures to mitigate those.
7. Taking initiatives for developing cluster-based industries and providing assistance to entrepreneurs in using modern facilities like ‘e-commerce’ for dispelling barriers to the marketing of manufactured goods.
8. Organizing training programs for entrepreneurship development and capacity building of entrepreneurs.
9. Receiving and resolving complaints from entrepreneurs through problem solution center.
10.Organizing fairs, rallies and other programs for encouraging the existing and potential entrepreneurs and the banks and financial institutions as well.
11. Providing information and necessary policy support to Government run “Private Sector Development Policy Co-ordination Committee (PSDPC)” and “Business Initiative Leading Development (BILD)”- formed at DCCI to help the Government.
12. Assisting the Government in formulating the Industrial policy.
13. Helping the Government by earning interest from investment schemes.
14. Providing the government with information related to CMSME loan disbursement, recovery and refinance.
15. Implementing or acting as the coordinator in different projects assisted by the Government and development agencies.
16. Providing answers to the queries made by the National Parliament, Ministry of Finance, and Prime Minister’s Office and other Ministries from time to time.