The interim government of Bangladesh has issued the 'Microfinance Bank Ordinance, 2026' to strengthen microcredit operations, create employment, reduce poverty, and ensure ownership for small borrowers. According to the ordinance, published in a gazette by the Legislative Division of the Ministry of Law, Justice and Parliamentary Affairs, microfinance borrowers will now become shareholders, holding at least 60 percent ownership in the new bank. The bank will be established with an authorized capital of Tk 500 crore and a minimum paid-up capital of Tk 200 crore, under a license from Bangladesh Bank.

The ordinance defines the Microfinance Bank as a social business institution, requiring profits to be reinvested in social and poverty alleviation sectors rather than distributed as dividends. The nine-member board will include four borrower-elected directors, three nominated directors, two independent directors, and a managing director without voting rights. The bank will provide loans for self-employment, accept deposits, and offer technical and administrative support to small entrepreneurs.

Bangladesh Bank will act as the licensing authority and may dissolve the board or remove directors if necessary. The government will announce the effective date of the ordinance through a separate notification.