Bangladesh Bank raises agricultural credit target

Bangladesh — Bangladesh Bank announced a new Agricultural and Rural Credit Policy for fiscal year 2026-27, setting a disbursement target of Tk 600 billion (Tk 60,000 crore), a 53.85% increase from the previous year's target of Tk 390 billion. The policy mandates that commercial banks allocate at least 4% of their total loan portfolio to agriculture, up from 2.5%. State-owned and specialised banks are assigned Tk 204.95 billion, while private and foreign banks will disburse the remaining Tk 395.05 billion. New measures include collateral-free loans up to Tk 500,000 for fisheries and livestock, alternative guarantees for women and marginal farmers, simplified farmer identification via local officers or Farmer Cards, relaxed contract farming rules, and expanded credit coverage to new crops and activities such as blueberry cultivation, camel rearing, and organic fertiliser production. The policy also introduces insurance provisions for climate risk and establishes refinancing facilities of Tk 100 billion and Tk 30 billion. Bangladesh — Bangladesh Bank launched a web-based agricultural credit MIS software to strengthen monitoring. The policy aims to boost agricultural production, control inflation, and support rural economic development.