Financial Inclusion Status of Bangladesh: An Empirical Study

Abstract

This paper is commissioned to analyze the present financial inclusion status of Bangladesh. The research draws attention to the fact that despite of increasing number of Bank Branches in the country the change in the Financial Inclusion Index is not satisfactory. There is a negative change in the inclusion index in 33 districts of the country. 4 of the districts reported with no change in the index value compared to year 2011 and 2014. Despite being commercially important to the economy the number of un-banked or under-banked population is significantly high. The absence of formal banking solution in those areas is forcing the entrepreneurs to borrow money from the informal channel at a higher cost which is demoralizing the entrepreneurial spirit of the population and thereby hindering growth of that region.

Keywords: Banking in Bangladesh Financial Inclusion, Financial Inclusion Index, Banking policy.