Women and the rural informal credit market in Bangladesh

The study focuses mainly on lenders, rather than on borrowers or the uses of credit by women. Women"s access to credit and participation in savings programs has been limited. Important findings of the study include: saving is a part of the traditional role and image of women in Bangladesh; women may engage in informal credit programs of which male members of the household are unaware; and women have credit networks especially for women. Questionnaires relating to household expenditures were administered in two villages to each head of the household. Data indicated that most women from these households either borrow or lend cash. Most loans are used for consumption purposes. It was difficult to identify the act of saving because not many rural women had bank accounts, and women saved very little of any income they had. When savings occurred, it was usually in the form of musti -- a custom by which women remove a handful of uncooked rice from the daily measurement of rice for the household. After several weeks of savings this rice was recycled or sold. Most women did not tell their husbands about money earned from musti savings. Constraints on the income level of women seem to be the main factor explaining the low levels of female investment. No informal women"s credit groups were found, and all lending and borrowing were done on an individual basis. (Author abstract, from PN-ABN-639)