Women also need formal bank credit
Grameen proved commitment is the key to development effort, which could find out ways and means to remove any obstacles as Professor Md Yunus said: "As a bank you have to reach the poor people. That's a big change, and banking will not be the same." As a result the world across cultures and civilizations have accepted Grameen Bank model as a means of eradicating poverty.
But while many women have been empowered from micro-credit initiatives, equal access to mainstream financial and credit markets is also essential. Women should not be relegated to the informal economy and micro-credit schemes but should be recognized as important economic actors, in some sectors and situations critical for economic development, and be given equal access to credit and other financial services.
For all latest news, follow The Daily Star's Google News channel. However, only 1 % formal bank credit goes to women (as depicted in the PRSP). It was suggested to provide 5 % of total bank credit to women in the document. The formal banking system discriminates against women, as they are unable to comply with the terms and conditions of banks in absence of assets.
In Bangladesh, most women lack access to land ownership, property and other critical resources because of the discriminatory inheritance rights. Also within the mainstream financial institutions there have been persistent perception of women as dependents of men. Women's earning is considered as supplementary and of less important for household survival than the contributions of men. Although, across countries studies reveal that women's income is critical for the survival and well being of family.
Women entrepreneurs' inability to access to formal financial institutions trapped them into the low investment-low production-low returns cycle. They fail to purchase raw materials or labour-saving or value-adding technology, to expand their enterprise because of lack of capital, to produce quality products because of cheaper and poor-quality inputs, to store their products for later sales, when prices improve, because of urgent needs for cash and pressure them to sell at low prices in local markets because of lack of funds for packaging and transport.
Access to financial services can enable women to leverage their skills and ultimately to develop their business. By upgrading their skills women can expand their economic role. Improving the economic position of women contributes to building their confidence and ultimately their social and political roles.
Recently, Prime Minister Khaleda Zia announced that the government is considering in setting up of a separate women's bank to create easy access to bank facilities for women entrepreneur. This would be a praiseworthy initiative to support women in their livelihood and run their businesses.
Similar initiatives were undertaken in Pakistan through establishment of First Women Bank Limited (FWBL). Transforming the status of women from passive beneficiaries of social services to dynamic agents of change and promoting asset ownership, through its credit policies were the key goals of this initiative.
Women's World Banking was founded after the First World Conference on Women in Mexico City in 1975. Women's World Banking provides access to capital for low-income women entrepreneurs. Through its affiliates located in 35 countries around the world, Women's World Banking increases women's capacity to take care of themselves.
However, apart from this singular initiative mainstreaming women friendly bank facilities is critically needed to make the change visible and functional. Women's economic empowerment will receive momentum, if all banks could ensure a sizeable amount of credit to them.
Hence, the government may undertake various initiatives to mainstream gender friendly bank facilities including credit for women. For which issuing order to increase credit to women is not the only solution. A comprehensive gender approach and strategies are needed to change the situation in the banking institutions.
One of the key strategies is raising awareness on gender issues in the banking institutions. Also stimulating a process of increased dialogue and discussions between gender advocates and banks is very important. These strategies will unpack the situation of women particularly women entrepreneurs to the bankers and extend their support for sustainable development of Bangladesh through women's economic empowerment.