The PROSPER programme (July 2007- June 2014) is built on the fundamental premise that the microfinance sector in Bangladesh has the potential to offer greater access to diversified financial services for the poor, and micro and small enterprises. The programme derives its strength from significant success achieved in the microfinance sector in Bangladesh and is focused on key gaps and priorities identified by national strategy for accelerated poverty reduction ˜Unlocking" the potential (October 2005). The UK’s Department for International Development (DFID) funds this £40 million programme, leaving room for other donors to contribute to the programme based on further needs.

PROSPER is a ˜focused” programme, with around two thirds of funds going to beneficiaries through financial intermediaries and around one third for a ˜enabling” work on regulation and capacity building. The aims of the programme, which are linked to the Poverty Reduction Strategy Paper (PRSP) of the Government of Bangladesh, are:

• increase in access to financial services for 20% of those in the target groups of extreme poor people, and micro and small enterprises: estimated to improve incomes for 10 million people
• introduction of flexible financial and support services to help eliminate monga; and
• legal protection of savings for 15 million poor households through implementation of new microcredit regulation.

The Bangladesh Bank coordinates the overall programme through a policy forum, the Programme Steering Committee (PSC) which is chaired by the Governor of the Bangladesh Bank. The Managing Director of PKSF chairs the operational forum, the Programme Coordination Committee (PCC). The regular programme finance, administration and coordination responsibilities are undertaken by the PROSPER Programme Coordination Unit (PCU).