Staff Reporter :
A new study by the Policy Research Institute (PRI) has revealed a stark concentration of wealth and financial services among a small segment of the population and within limited geographical areas in Bangladesh.
According to the report, just 0.1 per cent of account holders have deposits of Tk 1 crore or more, yet they collectively hold nearly 42 per cent of total deposits in the banking system as of 2024. This indicates a significant concentration of financial resources among a small, affluent demographic.
The study further found that 1 per cent of loan account holders receive 75 per cent of all loans issued nationwide. Additionally, 78 per cent of total lending is concentrated in the two major metropolitan areas of Dhaka and Chattogram. A similar pattern was observed in deposit distribution, with these two districts together accounting for over 35 per cent of the country’s total deposits.
Conducted using data from the Bangladesh Bank, the study – entitled Spatial and Historical Trends of Financial Development in Bangladesh – was carried out with support from the International Growth Centre (IGC). The findings were presented at an event in Dhaka on Wednesday.
Delivering the keynote presentation, Ashikur Rahman, Principal Economist at PRI, noted, “Despite decades of bank expansion, private banks remain heavily clustered in the affluent eastern belt, suggesting they are not reaching out to, or adequately serving, the poorer regions of the country.” The report also highlighted sectoral disparities in lending. Between 2019 and 2024, approximately 40 to 42 per cent of total loans were directed towards the industrial sector, whereas the agricultural sector received only 4 to 5 per cent of loans during the same period.
Speaking at the event, Bangladesh Bank Governor Ahsan H Mansur acknowledged the findings, stating that the government must reassess its financial policies to address these imbalances. He added that the central bank is already working on strategies aimed at enhancing financial inclusion.
Deputy Governor Md Habibur Rahman, attending as a special guest, praised the collaborative effort behind the report. “The study highlights areas where financial services remain uneven,” he said, urging swift action to ensure that no district or community is excluded from the financial system.
Presiding over the event, PRI Chairman Zaidi Sattar emphasised the significance of the study, describing it as the first spatially disaggregated, longitudinal view of banking development in Bangladesh. “Financial development must be inclusive, and for that, it must be understood where the underserved truly are,” he stated.
A panel discussion, livestreamed on PRI’s official Facebook page, concluded the event. Panellists underscored the need for improved regulatory frameworks and enhanced data collection practices to inform better policy decisions and promote equitable access to financial services across the country.
