1% account holders enjoy 75% of bank loans — Study paints grim picture of financial access disparity
Foreign exchange reserves are expected to reach between $27 and $30b by next month
A recent study by the Policy Research Institute (PRI) of Bangladesh has cast a harsh spotlight on inequality in financial access, revealing that only 1% of the bank loan account holders receive 75% of all loans nationally, while 78% of lending is concentrated in Dhaka and Chattogram.
Findings of the study supported by the International Growth Centre (IGC) and conducted in collaboration with the Bangladesh Bank were unveiled at a dissemination event, "Spatial and Historical Financial Development in Bangladesh", today (21 May).
Delivering the key presentation, Ashikur Rahman, the principal economist at PRI, stated, "Despite decades of bank expansion, private banks remain heavily clustered in the affluent eastern belt, suggesting they are not reaching out and perhaps not serving the poorer regions of the country."
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"In effect, there is circumstantial evidence that suggests the private banks are not banking for the poor," he said.
As the chief guest, Bangladesh Bank Governor Ahsan H Mansur underscored the importance of rebuilding foreign exchange reserves and enhancing the performance of the banking sector.
"Foreign exchange reserves are expected to reach between $27 and $30 billion by next month. The long-term goal is to increase this to $40 billion, although achieving that will take time," he said.
The governor highlighted that a resilient banking system is essential to delivering quality services to all citizens, regardless of location.
As a special guest, Deputy Governor Md Habibur Rahman praised the collaboration.
"The study sheds light on areas where financial services remain uneven," he said, urging immediate action to ensure that no district or community is left behind.
Presiding over the event, PRI Chairman Zaidi Sattar said the study offers the first spatially disaggregated, longitudinal view of banking development in Bangladesh, revealing the invisible gaps that national averages often hide.
"Financial development must be inclusive, and for that, it must be understood where the underserved truly are."
A panel discussion, livestreamed on the PRI's Facebook page, stressed the importance of refining regulatory tools and improving data collection practices.
