Microcredit programs are mainly operated by GB, NGOs and some nationalized Commercial Banks (NCBs). But GB and NGOs do not participate directly in the formal financial market. The Government of Bangladesh implements microcredit programmes through as many as 15 departments and 13 ministries in addition to NCBs. Almost all of them replicated the GB model of microcredit. Membership in these microcredit programs is estimated at about 15 percent of the total. The private commercial banks have shied away from microfinance programmes though in recent years there has been some involvement by these banks. MFIs are yet to mobilize their resources from the formal money and credit market using deposit instruments, share, debentures, bond, securitization etc. like other formal first tier financial markets. At an advanced stage of operation, MFIs can provide a bridge between the private capital market and domestic MFIs by rating the credit worthiness of MFIs and scrutinizing their portfolios. MFIs may consider raising funds from the domestic private capital market by issuing special types of bonds (such as a social bond), which may be subscribed to by companies, banks and private individuals. At present, linking MFIs with the formal financial market is considered to be an important aspect toward their sustainability.
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