Bangladesh: Microcredit Regulatory Authority Act, 2006

This paper examines the "Microcredit Regulatory Authority Act" of Bangladesh that has been enacted in order to establish an authority and formulate rules for:

• The efficient regulation of microcredit programs;
• Ensuring transparency and accountability in the activities of microcredit organizations operating in Bangladesh.

The paper details the following seven chapters of the Act:

• The title, territory and the date of enforcement of the Act as well as the definition of various terms;
• The creation of "The Authority" for the establishment of the Act, presenting information about:
  • The general management, responsibilities and activities;
  • The formation and the constitution of the Board of Directors;
  • The functions of the nominated members, etc.
• The financial matters related to "The Authority," such as its funds, annual fees, annual budget, accounting and auditing;
• The importance of the certificate given by "The Authority," which is necessary for microcredit organizations to run microcredit programs.
• Matters relating to the microcredit institution, explaining the procedures for: formation of the "Depositor Security Fund," change of the constitution, etc; also the authority and activities of microcredit institutions;
• The offences and punishments;
• Miscellaneous items such as the submission of reports to the government, procedures to be followed for issuing orders, circulars, etc.