ABSTRACT
The importance of microcredit in our society cannot be ignored by any means. It creates self-employment opportunities; increases income and consumption; improves health, education, and women's empowerment etc. Microfinance contributes to development at both the individual and national levels. Insufficiency of loanable funds might be one of the causes of the marginal outreach of microcredit. Bangladesh is viewed as a synonym to microfinance. The concept of modern microfinance was born in Bangladesh by the introduction of Grameen Bank (GB). GB is a special type of bank owned by the borrowers whom it serves. Bangladesh is the world's third largest Muslim country and its official religion is Islam. Therefore, Muslim people hesitate to engage in any activities that are prohibited by their religion. Regulatory framework is the key to financial stability and development. A well-designed regulatory framework would help to incubate an infant industry.
