Financial inclusion
Men spend loans taken in women’s name
Microfinance institutions (MFIs) are apparently playing the biggest role in the financial inclusion of women at the grassroots, but most women entrepreneurs cannot use the loans that they take from these institutions.
A total of 66.31 per cent of women said their husbands or other family members use the money that they borrow from various sources while 29 per cent of women use the loans themselves and the remaining portion said other women members of their family use the money coming from loans.
The scenario was revealed by a study titled ‘Gander gap in financial inclusion in Bangladesh,’ which was released at an international conference on ‘Financial Inclusion in Bangladesh: Gender Perspectives’ in Dhaka on Sunday.
Private research organisation Centre for Research and Development (CRD) organised the event in association with the Bill and Melinda Gates Foundation.
A total of 66.31 per cent of women said their husbands or other family members use the money that they borrow from various sources while 29 per cent of women use the loans themselves and the remaining portion said other women members of their family use the money coming from loans
Sayema Haque Bidisha, a professor of economics at the University of Dhaka, Lila Rashid, an expert on financial inclusion and former executive director of Bangladesh Bank, and Ayesha Banu, a professor of women and gender studies at the University of Dhaka, jointly presented the study.
The study was prepared based on the responses of 4,442 women (58 per cent) and 3,149 men (42 per cent) from 3,300 families in 56 districts across the country over about two and a half years.
The study found women’s financial inclusion happens through three kinds of institutions – banks, mobile financial services (MFS) and Microfinance institutions (MFIs).
The women are far behind than men in banks and MFS. The gap stands at 17.28 per cent and 5.5 per cent respectively. The women are ahead of men in MFIs. The figure MFIs stands at 56.
Professor Ayesha Banu highlighted seven challenges faced by women in financial inclusion. These are the existing gender policy and practice; hampering values and ideology of gender equality; lack of education, competency and awareness; lack of rights to income and wealth; negative side of access to technology; deprived of benefits of infrastructural development and natural calamities.
If an agent banking point is two kilometres away, both distance and transportation hamper the financial inclusion of women, she added.
Lila Rashid highlighted various aspects of the study saying only 119 women and 688 men of the respondents own personal business while 91 per cent of these women have no trade licence. Overall, financial inclusion of women should be seen separately with a broader view, she added.
Snigdha Ali, Bangladesh Country Lead, Inclusive Financial Systems, Bill & Melinda Gates Foundation, moderated the event.
She said bankers keep more confidence in women wearing modern dresses than women wearing veils, but women’s access to the outside world is still restricted.
CRD managing director Md Mokhlesur Rahman highlighted the research methodology.
Former Bangladesh Bank governor Atiur Rahman inaugurated the event. He said 99 per cent of microcredit is distributed among women in the country.
The Bangladesh Bank has taken various programmes to provide loans to women entrepreneurs, Atiur said adding women can borrow up to Tk 2.5 million without mortgages.
Nururn Nahar, deputy governor of Bangladesh Bank, and Hillary Miller-Wise, deputy director of Inclusive Financial Systems, Bill & Melinda Gates Foundation, also spoke at the event.