BURO

BURO | Career

Approach & Recognition

Sustainable Approach
BURO Bangladesh considers sustainability of lending operation is its ability to cover the cost of administration, loan losses, savings account interest, and cost of other capital from funds generated through receipts from interest charges and other fees. Profitability remains to be tested in many countries, but remarkable examples have been set by some lending operations that break even or overcome that point. BURO Bangladesh firmly believes this and has already demonstrated that it is feasible in Bangladesh. Its sustainable approach is based on the following:

	Developing an appropriate quality financial service delivery methodology: Virtually all programs that come close to break even, use special savings and credit techniques adopted from the informal sector.
	Streamlining administration to control cost: For very small loans, administrative techniques must be extremely simple, so that paper work is minimized, and volume of workload per staff is maximized. Despite streamlined procedures, the administrative costs will still be higher that necessitates high interest rate to cope up with volume of loan.
	Full cost pricing: From the outset, institutions should charge a rate that will ultimately support a viable lending operation. Loans to informal sector will require interest rates at least 7-10 percent higher than the standard commercial rates. This informal sector can afford such rates.
	Adopt transparent and consistent financial reporting: A frequent criticism of MFIs is the question of accuracy or the completeness of their financial statements and reporting. The generally accepted accounting principles and transparent recording of transactions adopted among the subsidiaries will enhance the credibility of MFIs with the financial investors.
	Accountability: Managers and staff must be held accountable for the results and should be rewarded for good performances. Good management is essential, but more important is the requirement for accountability that comes operating as a business, where survival depends on good performance.

In fine, self-sufficiency in savings and credit operations is an essential prerequisite for reaching a large number of members and becoming a permanent, independent institution.

Recognition
Through its journey, BURO Bangladesh has achieved numerous recognitions and awards from distinguished concerns. Followings are the most esteemed of them:

[ CGAP/The World Bank Financial Transparency Award ]

BURO Bangladesh has been awarded Merit Recognition for its performance in Financial Transparency Award 2005 and 2006 by the Consultative Group to Assist the Poor (CGAP)/ The World Bank. This is a significant international recognition to the organization especially for its financial transparency. Applicants for the award were judged according to their compliance with international disclosure guidelines, including industry-specific CGAP Disclosure Guidelines that are widely accepted as International Financial Reporting Standards (IFRS).

[ SAFA Award for Best Published Reports and Accounts ]
	The South Asian Federation of Accountants-SAFA, which was established in 1984 to coordinate the accounting profession from the SAARC member countries, has awarded BURO Bangladesh the first position for the Best Presented Accounts in the category of NGO-MFI for the year 2005.

[ ICAB National Award for Best Published Reports and Accounts ]
	The Institute of Chartered Accountants of Bangladesh (ICAB) has awarded BURO Bangladesh the second, first and third position in a row in the NGO-MFI sector for its best published Reports and Accounts for the financial year 2004, 2005 and 2006 respectively. This is a big national recognition to an NGO-MFI especially for its financial transparency.