He underscored the need for a legal framework and an independent regulatory body for the non-governmental organisations (NGOs).

"This has now become essential so that NGOs can collect funds for lending purpose from local sources instead of depending on external sources or grants," Prof Yunus said.

The Grameen Bank founder was speaking at a meeting with the members of Metropolitan Chamber of Commerce and Industry (MCCI) at its conference hall in Dhaka.

Many NGOs are being forced to shut down due to lack of funds as they were dependent on grants. But microcredit institutions are not facing this type of problem, he said.

Grameen Bank, a microcredit institution, did not take any fund from external sources after 1995 and now its funds come entirely from savings and its own sources, added Prof Yunus, managing director of Grameen Bank.

The renowned microcredit institution has a total of 1,225 branches and about 34 lakh borrowers, 95 percent of whom are women.

Prof Yunus said Grameen Bank this year launched an exclusive microcredit programme for the beggars under which the bank is providing them with interest-free credit.

Speaking on the small and medium enterprises (SMEs) he said drastic changes are needed in the present financial policy to help the SMEs overcome their problems.

The SMEs are facing failure because of the existing banking system, he said adding, "Time has come to think about a different banking structure for the SMEs, if needed."

Prof Yunus said the problems of SMEs should be looked into if the government really wants to make the economy vibrant.

He said the poor are still deprived of access to loan. "On several occasions bankers told me that poor people are not the right groups to get bank loans."

In his speech, MCCI President Kutubuddin Ahmed appreciated the role of Prof Yunus and his Grameen Bank in poverty reduction.

He said throughout the world Dr Yunus is recognised as a role model for accessing the poor, particularly women, with microcredit.

Bangladesh is the only country where microcredit outreach could cover 70 percent of the poor families while other countries could hardly reach even 10 percent, he added.

The MCCI chief said Grameen Bank has improved the attitude of the borrowers towards repayment of loans, which has been a major problem in credit delivery in Bangladesh.

About the paradox of business-NGO relationship, he said Dr Yunus has proved that business and NGOs can play supplementary roles.

"In a globalised world, business and many NGOs will increasingly find that there is scope to work jointly for sustainable social and economic growth."

Kutubuddin Ahmed mentioned that Dr Yunus has been adjudged as one of the 25 most influential businesspeople of the world by a panel of professors from the Wharton School at the Pennsylvania University.