Claiming that microcredit is "real banking," Chief Adviser Professor Muhammad Yunus on Saturday emphasized the need to establish a Microcredit Bank to create more entrepreneurs by disbursing collateral-free small loans to young people."Microcredit has reached such a stage, we must now think differently — the establishment of a Microcredit Bank. This is currently an NGO; it must now graduate from being an NGO," he said while inaugurating the Microcredit Regulatory Authority (MRA) building in the city's Agargaon area.Speaking as the chief guest, Professor Yunus, widely regarded as the founder of microcredit, proposed framing a new and separate Microcredit Bank Act to pave the way for the establishment of the Microcredit Bank. Addressing the limitations of existing microcredit organizations, he pointed out that while they can currently accept savings from their members, they are not allowed to take deposits from the general public.

"The time has come to establish a Microcredit Bank," he said. "Once licensed, this bank must operate as a social business bank, not a conventional one."

Professor Yunus emphasized that the law must ensure that the owners of the Microcredit Bank cannot take profit from it.

"The loan recipients may benefit from the bank, but the investors must not take profit," he clarified.

Recalling the founding philosophy of Grameen Bank, the chief adviser said it was based on the belief that every human being is an entrepreneur.

He noted that young people will be able to access collateral-free loans from the Microcredit Bank to invest in businesses and become entrepreneurs. “If young people receive capital for their ventures, they will no longer need to seek jobs,” he said.

"As a government, it is our responsibility to establish institutions that support the youth," he added.

Reflecting on the journey of Grameen Bank, he said conventional banks provide credit with guarantees, while Grameen Bank lends to the poor based on trust.

He noted that public funds were once looted from many conventional banks, whereas Grameen Bank has maintained transparency in its operations.

"Microcredit is the real banking. So, people must turn to it," he said.

Professor Yunus commended the Microcredit Regulatory Authority for setting an example of transparency and for fulfilling its historic responsibilities.