The Bangladesh economy has been shifting to urban concentrating economic activities, while the rural economy is still playing a significant role for poverty reduction and economic development through employment generation and continuous contribution to the economy.
The first Rural Credit Survey is conducted by Bangladesh Bureau of Statistics (BBS) in 1987. According to the result of Rural Credit Survey 1987, the rural credit market of Bangladesh had been dominated mainly (71.6%) by professional moneylenders (mahajans), landowners, friends, relatives and others (BBS, 1989). Some selected key findings have been shown in Annex-VII. From the results of above mentioned survey, it is observed that small-scale farmers are facing difficulties in gaining access to institutional loans which are directing them to seek non-institutional loans.
The policies of the governments in many developing countries are to develop an intentional approach to remove credit constraints in rural areas. Institutional channels were supposed to save the farmers from the exploitation of the ‘usurious monopolist’ cum moneylenders. This has provided some kind of awakening, especially in the context of Bangladesh, the government established the first-ever institution- Agricultural Development Bank (Krishi Bank) in the 1960s- to provide rural credit. Later, the government also encouraged the establishment of rural branches of the nationalized commercial banks in the early 1970s and set up a special agricultural credit programme called Matir Dak in 1977.
The sources of rural credit can be classified into two groups. One is a formal or institutional source largely comprised of banks and NGOs. The other source is generally called informal or noninstitutional- mostly moneylenders, friends/relatives, traders, landowners etc.
The first Rural Credit Survey was conducted by Bangladesh Bureau of Statistics (BBS) in 1987. This survey provides updated data for planners, policy makers, researchers, development partners and other agencies for the management of effective and efficient use of rural credits.
The survey was designed to provide current data on the following aspects of the country’s rural credit system:
# to identify the agricultural and non-agricultural borrowing households;
# to identify the sources of credit facilities and their roles in the rural economy;
# to identify amounts of loan advanced to rural households and their classification by purposes of utilization in agricultural and non-agricultural activities;
# to identify the actual utilization of loans by borrowing households;
# to identify the characteristics of outstanding debts of borrowing households and reasons for non-repayment of loans in time;
# to identify economic characteristics of borrowing households and distinction between borrower and non-borrowing household groups by household characteristics.
Kind of Data
Sample survey data [ssd]
Producers and sponsors
Authoring entity/Primary investigators
BANGLADESH BUREAU OF STATISTICS
Statistics Division, Ministry of Planning
The Population and Housing Census 1981 served as the frame for the design of the rural credit sample, which was carried out in two phases. Only the rural Enumeration Areas (EAs) had been considered under the sampling frame.
Sample Selection Procedures
The first phase was a PPS selection of the PSUs with the measure of the size being the census count of households. Selection of the PSUs had been performed as a computer operation, while the second phase entailed creation of HH listing within the selected PSUs. Since EAs were considered as PSUs, but in some cases, they were too small and they had to be linked to adjacent EAs in order to qualify satisfactorily as PSUs, a task that was thought to be much too tedious, costly and time consuming.
Note that this sample size would only be appropriate for providing estimates of common characteristics. In the next section, the allocation of the PSUs among division is described considering this minimum requirement.