Non Performing Asset

 Non-performing assets is a classification used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make the payment of credit within a certain time of period, the loan is considered to be a non-performing asset. Non-performing  assets  are  problematic  for  financial  institutions  since  they depend on interest payments for income. It becomes a great problem to the growth of financial institutions due to provision deposited to the Bangladesh bank.

Micro-credit Regulatory Authority (MRA)

 The Micro-credit Regulatory Authority has been established by the Bangladesh Govt. under the "Micro-credit Regulatory Authority Act 2006” to promote sustainable development of  micro-finance sector.  It  is  the  central  body  to monitor and supervise micro-finance operations of NGO and other micro credit organizations. License from the Authority is mandatory to operate micro-finance operations in Bangladesh as an NGO. Micro-credit institutions have been providing various social and financial services to the poor to poverty reduction within the society.

Micro Credit

 Micro-credit is a variation on traditional credit service that involves lends to individuals or micro-entrepreneurs whose are unable to secure credit due to poverty.  They  are  relatively  unemployed  or  underemployed  and  have  no collateral and credit  experience.

In  Bangladesh,  various  kinds  of  company  like  Banks,  NBFI,  NGO  and

International Funding Body doing the Micro credit operation to ensure poverty reduction, self-employment, etc.

Micro-credit  is  one  component  of  micro-finance, which  also  includes  other financial services such as savings accounts, insurance and money transfers.