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Citizens Bank Launches CMSM Training to Accelerate Bangladesh's SME Growth

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  Published in Business and Finance on Wednesday, November 12th 2025 at 6:01 GMT by The Daily Star

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Citizens Bank Launches a Comprehensive Training Program on CMSM Financing for Bangladesh’s Growing SME Sector

On Thursday, 28 March 2024, Citizens Bank Limited (CBL) hosted an intensive training workshop for more than 80 participants—including local entrepreneurs, business consultants, and fellow banking professionals—at its headquarters in Dhaka. The event marked the bank’s first large‑scale effort to demystify its newly introduced CMSM financing product, a tailored credit instrument designed to boost Bangladesh’s micro, small, and medium‑enterprise (MSME) ecosystem.

Why CMSM? A Strategic Move Toward Financial Inclusion

The CMSM acronym stands for Credit Management System for Micro, Small and Medium Enterprises. Launched in partnership with the Bangladesh Bank (BB) and several development agencies, CMSM financing offers:

CBL’s CEO, Mr. Rashed Hasan, emphasized that CMSM is “a strategic step toward aligning Bangladesh’s credit infrastructure with global best practices.” By simplifying the loan‑to‑value ratio and introducing an expedited approval process, the bank aims to unlock a credit gap that has long hampered the growth of SMEs—particularly in the garment, tea, and fisheries sectors.

The Workshop: What Happened?

Venue & Participants
The half‑day session took place at CBL’s Bashundhara branch, a modern hub equipped with state‑of‑the‑art digital kiosks. Delegates included:

• 35 MSME owners from 12 districts
• 12 finance officers from 3 other banks
• 10 consultants from SME Development Board (SMED)
• 5 representatives of Bangladesh Bank’s Financial Inclusion Unit

Agenda Highlights

1. Opening Address – Mr. Hasan outlined the bank’s vision for SME empowerment and the role of CMSM.
2. Regulatory Framework – Dr. Farzana Alam, a senior regulator from BB, explained how CMSM aligns with the Credit Policy 2024 and the Digital Finance Initiative (DFI).
3. Product Deep Dive – A product specialist walked participants through eligibility criteria, documentation checklist, and the digital application portal (accessible via the CBL mobile app).
4. Risk Management – An AML/KYC specialist illustrated how the bank employs AI‑driven credit scoring to mitigate default risk.
5. Case Studies – Two local SMEs that already benefited from CMSM shared their success stories, highlighting increased production capacity and job creation.
6. Q&A Session – Attendees asked about cross‑border trade financing, tax incentives, and how CMSM integrates with the National Digital Credit Score system.

Key Takeaways for Participants

1. Simplified Application Process
   The CMSM portal now allows a one‑click loan request, with instant pre‑qualification based on digital footprints such as sales data, bank statements, and customer reviews.

2. Lowered Entry Barriers
   By permitting collateral in the form of digital invoices and intangible assets, many SMEs previously excluded due to lack of tangible collateral can now access credit.

3. Digital Integration
   The training showcased how CMSM ties into the Bangladesh Bank’s Digital Ledger Network (DLN), enabling secure, real‑time transaction monitoring and reducing fraud.

4. Capacity Building
   Participants received a handbook and a set of Quick‑Start Guides that illustrate how to prepare a loan application, maintain good standing, and access post‑disbursement support services.

Voices from the Ground

“We have struggled for years to secure a loan that matches our production needs. CMSM’s flexible terms and fast approval give us a real chance to scale up,” said Shirin Begum, owner of a small spice‑processing unit in Sylhet.

“The use of AI in credit scoring is a game‑changer,” noted Mr. Tarek Ahmed, a senior officer from Bank of Industry. “It ensures that the bank’s risk is managed while we can focus on growth.”

Building on Government Initiatives

CMSM financing dovetails with the Bangladesh Government’s ‘Vision 2030’ roadmap, which aims to convert 50 % of the country’s economic output to high‑value manufacturing and service sectors. The initiative is supported by:

• The Micro, Small, and Medium Enterprises Development (MSMED) Act
• Digital Bangladesh policies that promote fintech adoption
• Export Promotion Zones that provide tax rebates for certified SMEs

CBL’s efforts reflect a broader trend: banks are becoming partners, not just lenders. By offering knowledge transfer workshops and digital tools, institutions like CBL are actively contributing to a more resilient economic landscape.

Where to Learn More

• Citizens Bank Limited – [ https://www.citizensbank.com/ ]
• Bangladesh Bank – Credit Policy 2024 – [ https://www.bb.org.bd/credit-policy ]
• SME Development Board (SMED) – [ https://www.smed.gov.bd/ ]
• Digital Ledger Network (DLN) – [ https://dln.bb.gov.bd/ ]

The training event was live‑streamed on the bank’s YouTube channel, and a recorded version is available for those unable to attend.

A Roadmap for the Future

The success of the CMSM training session underlines a pivotal shift: financial institutions are moving from reactive credit models to proactive, technology‑driven solutions. The next steps for Citizens Bank include:

1. Expanding Reach – Launching similar workshops in up to 20 districts by mid‑2025.
2. Partnerships with Tech Start‑ups – Integrating AI credit‑scoring platforms for real‑time risk assessment.
3. Feedback Loops – Establishing a quarterly MSME Advisory Council to refine CMSM features based on borrower experiences.

In an economy where SMEs account for more than 60 % of employment, initiatives like CMSM are not just financial products; they are catalysts for inclusive growth. Citizens Bank’s training program demonstrates that when knowledge, technology, and regulatory support converge, the potential to transform the SME sector—and by extension, the national economy—becomes limitless.