Dhaka, Bangladesh, June 20, 2012—
IFC, a member of the World Bank Group, has released a study that finds there is a significant opportunity for banks in providing services to most of the country’s 3 million ready-made garment workers so that can access credit and open savings accounts.
The study found that 86 percent of workers in the $16 billion ready-made garment industry have trouble accessing formal financial services. Two IFC-managed agencies carried out the study: the South Asia Enterprise Development Facility, run in partnership with the UK Department for International Development and the Norwegian Agency for Development Cooperation, and the Bangladesh Investment Climate Fund, managed in partnership with the UK Department for International Development and the European Union.
“This report shows that there is a considerable opportunity in offering a range of financial services to ready-made garment workers so that they can save and manage their money more effectively,” said Abul Quasem, Deputy Governor of Bangladesh Bank, at the report launch.
Entitled ‘Deposit Mobilization for Ready-made Garment Workers in Bangladesh’, the study revealed that only 14 percent of the workers have formal bank accounts, showing the huge untapped market. Most workers receive their salaries in cash, and often end up in financial trouble before their next payday.
“Making financial services accessible and affordable to the marginalized is an IFC priority,” said Kyle Kelhofer, IFC Country Manager in Bangladesh.
The study suggests that the banks willing to bring services to the garment workers need to offer them at an affordable price and after work hours. Factories should also explain to workers the benefits of managing their finances through banks, it recommended.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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