Bangladesh Bank Unveils Tk 60,000 Crore Agricultural Credit Policy

Bangladesh Bank has officially announced a comprehensive new agricultural and rural credit policy for the 2026-27 fiscal year, marking a significant expansion in the country's rural financing framework. The landmark announcement was made during a formal press conference held at the central bank headquarters in Dhaka on August 17, 2026. Through this newly declared policy, the central bank has set an ambitious and substantial target of distributing a total of Tk 60,000 crore across the agricultural and rural sectors throughout the upcoming fiscal period, representing a notable increase from the previous fiscal year's target of Tk 39,000 crore.

As part of the stringent regulatory measures introduced in the 2026-27 policy, Bangladesh Bank has imposed a strict obligation on commercial institutions operating within the country. All scheduled banks are now legally required to allocate at least 4 percent of their total disbursed loans directly into the agricultural sector. This requirement represents a substantial upward revision from the previous mandatory threshold, which stood at just 2.5 percent, thereby compelling financial institutions to prioritize rural and agricultural development financing much more aggressively than in past years.

To ensure the effective execution of the massive Tk 60,000 crore credit program, the central bank has categorized the disbursement responsibilities among different types of banking institutions. State-owned commercial banks and specialized financial institutions have been assigned a combined target of Tk 20,495 কোটি to distribute among rural borrowers. Meanwhile, the numerous private commercial banks and foreign banks operating in Bangladesh carry the larger share of the distribution responsibility, with a designated target of Tk 39,505 কোটি to be channeled into the agricultural economy.

In addition to raising financial targets and mandatory quotas, the 2026-27 agricultural and rural credit policy introduces crucial structural flexibilities aimed at easing access to capital for marginalized and growing sectors. Specifically, the regulatory framework has significantly relaxed collateral requirements for borrowers engaged in the fisheries and livestock sectors. Under the newly implemented guidelines, individuals seeking loans of up to Tk 5 lakh within these vital sectors are now permitted to secure financing through personal guarantees, social guarantees, or group-based guarantees, removing traditional barriers to credit.

The newly unveiled policy reflects Bangladesh Bank's ongoing commitment to strengthening food security, empowering rural entrepreneurs, and modernizing the agricultural landscape through enhanced financial inclusion. By increasing both the absolute volume of available credit and the mandatory allocation percentage for all banks, the central bank aims to ensure a steady and reliable flow of liquidity to farmers, fishermen, and livestock producers across the nation. Economists and sector stakeholders are expected to closely monitor the implementation of these directives throughout the 2026-27 fiscal year to measure their direct impact on grassroots economic growth.