Ensure economy for all, not just for privileged few

The recent study by the Policy Research Institute (PRI) sheds light on a troubling reality in Bangladesh: a stark concentration of wealth and financial services among a minuscule segment of the population.

With just 0.1 per cent of account holders possessing deposits of Tk 1 crore or more, yet controlling nearly 42 per cent of total banking deposits, it is evident that financial resources are disproportionately held by a privileged few.

This alarming trend not only highlights economic inequality but also raises questions about the accessibility of financial services for the broader population, says a report published in this newspaper on Thursday.

The findings reveal that 1 per cent of loan account holders receive a staggering 75 per cent of all loans issued nationwide.

This concentration is further exacerbated by the fact that 78 per cent of total lending is confined to the metropolitan areas of Dhaka and Chattogram.

Such geographical disparities in financial distribution suggest that the banking sector is failing to reach the underserved regions of the country, particularly those in the poorer western and northern areas.

We agree with Principal Economist at PRI who aptly noted that despite decades of bank expansion, private banks remain clustered in affluent regions, neglecting the financial needs of the majority.

This is particularly concerning given that between 2019 and 2024, only 4 to 5 per cent of loans were directed towards the agricultural sector, which is vital for the livelihoods of many Bangladeshis.

The industrial sector, on the other hand, received a disproportionate share of 40 to 42 per cent of total loans.

In light of these findings, it is imperative for the government and the Bangladesh Bank to reassess their financial policies.

Governor Ahsan H Mansur’s acknowledgment of the need for change is a step in the right direction, but swift action is required to ensure that no district or community is excluded from the financial system.

The call for improved regulatory frameworks and enhanced data collection practices is crucial for informing better policy decisions.

As PRI Chairman emphasised, financial development must be inclusive. It is essential to understand where the underserved populations are located and to implement strategies that promote equitable access to financial services.

Only then can we hope to bridge the financial divide and foster a more inclusive economy that benefits all Bangladeshis, not just a privileged few.