Midland Bank PLC has signed a refinance participation agreement with Bangladesh Bank to implement two major financing initiatives aimed at supporting cluster-based and cottage, micro, small and medium enterprises (CMSMEs) across the country.
The agreement covers the BDT 3,000 crore Cluster Financing Scheme and the BDT 1,500 crore Financial Sector Fund for the Development of Micro, Small, and Medium Enterprises (FSFDMSME), according to a media release issued by the bank.
The signing ceremony took place on 18 May 2026 at the Jahangir Alam Conference Hall of Bangladesh Bank. Nurun Nahar, Deputy Governor of Bangladesh Bank, attended the programme as the chief guest.
Under the agreement, Midland Bank will provide financing facilities to eligible cluster entrepreneurs and CMSME enterprises at a concessional interest rate of 7 per cent under Bangladesh Bank’s refinance scheme. The facility will include both term loans and working capital financing aimed at supporting the expansion and operational needs of small businesses throughout Bangladesh.
The initiative is intended to strengthen entrepreneurship development and promote the sustainable growth of cluster-based enterprises. It also seeks to improve access to finance for smaller businesses, many of which face difficulties obtaining affordable credit through conventional banking channels.
Key Features of the Agreement
| Component | Details |
|---|---|
| Participating institutions | Midland Bank PLC and Bangladesh Bank |
| Cluster Financing Scheme size | BDT 3,000 crore |
| FSFDMSME fund size | BDT 1,500 crore |
| Target beneficiaries | Cluster entrepreneurs and CMSME enterprises |
| Interest rate | 7% concessional rate |
| Financing types | Term loans and working capital |
| Agreement signing date | 18 May 2026 |
| Venue | Jahangir Alam Conference Hall, Bangladesh Bank |
The CMSME sector is widely regarded as a significant contributor to Bangladesh’s economic activity, employment generation and regional industrial development. Bangladesh Bank has introduced several refinance and stimulus programmes in recent years to expand financial inclusion and improve access to credit for small and medium-sized enterprises.
The agreement documents were signed and exchanged by Nawshad Mustafa, Director of the SME Special Programmes Department (SMESPD) of Bangladesh Bank, and Imtiaz U. Ahmed, Managing Director and Chief Executive Officer of Midland Bank PLC, on behalf of their respective organisations.
Officials said the initiative is expected to support employment generation, encourage entrepreneurship and strengthen the CMSME sector’s contribution to Bangladesh’s broader economic development.
Among those present at the ceremony were Mohd. Javed Tarek Khan, Head of Institutional Banking Division at Midland Bank PLC, Ahsan Jamil Hossain, Head of SME Division of Midland Bank PLC, along with senior officials from both Bangladesh Bank and Midland Bank PLC.