Study on Comprehensive Rural Finance
Under an agreement with Bangladesh Bank, InM is conducting a study on ‘Comprehensive Rural Finance’. The study will undertake a comprehensive national household level field study/survey in the rural economy on the country’s rural financial system (RFS) and collect sample data (both quantitative and qualitative) on financial products and services, such as savings, credit, payments, insurance, microfinance etc. from both formal and informal sectors of the rural economy.
Based on the survey outcomes, several policy papers will be produced by InM depicting future rural transformation and the role of Bangladesh Bank in ensuring inclusive rural transformation. In order to accomplish the broader goal of providing credible research support for designing rural finance policies and institutional reorganisation (as necessary) by the Bangladesh Bank and the national policy makers to support the long-term policy agenda of transforming Bangladesh to a high income country (HIC) by 2041, the study will undertake a number of specific tasks and perform several responsibilities in line with the Terms of References (ToR) of the study.
Among others, the study will provide a comprehensive review of the past and existing policies on rural finance introduced by the Government of Bangladesh and Bangladesh Bank and suggest new policies and amendments of existing policies, as needed. Further, the study will identify sector- and region-level potentials and occupational dynamics at the grassroots level of the rural economy and suggest policies to transform Bangladesh to a HIC by 2041. It will explore the financial-rural sector nexus in the rural economy and identify dominant rural growth drivers in support of inclusive rural transformation. It will also examine the extent, channels and other dimensions of net resource transfer from the rural to the urban areas through the financial sector institutions and assess their implications for rural growth and development.
Further, the study will assess the extent of availability of financial resources from different financial sources and the supply-demand gaps that exist for specific activities in both farm and nonfarm sectors in the rural economy and their development implications. The study will also examine the extent of penetration of digital (and other modern) financial services in terms of various household groups and enterprises in the rural economy and their implications for growth and development. In short, the study will provide evidence based inputs for framing effective policies by Bangladesh Bank for sustained and inclusive rural development in Bangladesh.
At present, InM has finalised all the questionnaires and FGD checklists in consultation with Bangladesh Bank and relevant experts. The field survey will start in April 2023.