The study attempts to identify the relationship between the banking sector’s financing in agriculture and total agricultural output at national level. To assist the study, a simple linear regression model has been developed. The results suggest that there is a strong correlation between banking sectors’ financing in agriculture and agriculture output in Bangladesh. It is also evident that banking sector’s credits are significantly facilitating financial inclusion in Bangladesh. The model can be instrumental for developing countries that are seeking ways of inclusive growth. In addition; the study recommends some policy measures to overcome the challenges of financial inclusion with regards to the banking sector’s initiatives in financing agriculture in Bangladesh.
Agricultural & Rural Credit Policy and Programme for the FY 2014-2015, Agricultural Credit & Financial Inclusion Department, Bangladesh bank.
Bangladesh Bank, Scheduled Bank Statistics. Various Issues, Dhaka: Bangladesh Bank.
Bashir, K., M., Mehmood, Y. and Hassan, S. (2010). Impact of Agricultural Credit on Productivity of Wheat Crop: Evidence from Lahore, Punjab, Pakistan. Pakistan Journal of Agricultural Sciences, 47 (4), 405-409.
BBS (2010). Bangladesh Bureau of Statistics, Statistical Year Pocket Book of Bangladesh, Bangladesh Bureau of Statistics, Statistics Division, Ministry of planning, Government of People's Republic of Bangladesh, Dhaka.
BER (2014). Bangladesh Economic Review (BER), Finance Division, Ministry of Finance, Government of Bangladesh, Dhaka, Bangladesh, 2014.
Dantwala, M., L. (1989). Estimates of Demand for Credit and Its Role in Poverty Alleviation. Indian Journal of Agricultural Economics, 44, 416-422
Ghosh, S. K., and Mitra, M. (2014). Relationship between Inclusive Banking and Growth: Bangladesh Perspective. Prajnan, NIBM: India. An accepted paper to be published on October-December, 2014 issue.
Iqbal, M., Ahmed M., & Abbas. (2003). Impact of Institutional Credit on Agricultural Production of Pakistan. The Pakistan Development Review, 42(4-II), 469-485.
Johnson, B. F., and Cownie, J. (1969). The Seed- Fertilizer Revolution and Labor Force Absorption. American Economic Review, 59 (4), 569-582.
Mehrotra, N., Puhashendhi, V., Nair, G., and Sahoo, B. B. (2009). Financial inclusion - An Overview. Occasional Paper-48. Department of Economic Analysis and Research, National Bank for Agriculture and Rural Development, Mumbai
Muftau, A. I. (2003). Commercial Bank Credit to the Agricultural Sector and the Nigerian Economy: An Analysis of the Future Trend. Advances in Management, 3 (1), 86-94.
Muhammad, S., Wasif, Mazhar-ul-Haq, Kishwar, M. W. and Baluch, N. (2004). Institutional credit: A policy tool for enhancement of agricultural income of Pakistan, International Research Journal of Arts & Humanities (IRJAH), 37 (37), 157-174.
Nwanyanwu, O., J. (2011). An Analysis of Banks' Credit on the Nigerian Economic Growth (1992-2008). Jos Journal of Economics, 4 (1), 43-58.
Obilor, I. S (2013). The Impact of Commercial Banks’ Credit to Agriculture on Agricultural Development in Nigeria: An Econometric Analysis. International Journal of Business, Humanities and Technology, 3 (1), 85-94.
Omobolanle, M., N. (2010). Micro Credits and Agricultural Productivity in Ogun State, Nigeria. World Journal of Agricultural Sciences, 6 (3), 290-296.
Qureshi, S.K. and Akhtiar, H.S. (1992). A Critical Review of Rural Credit Policy in Pakistan. The Pakistan Development Review, 31 (4), 781-801.
Rahman, A. (2009b). Financial inclusion as tools for combating poverty; Joesph Mubiru Lecture. Bangladesh Bank Quarterly, 7 (2), 01-08.
Rahman, M., W. & Parvin, L. (2009). Ground Water Irrigation and Food Security in Bangladesh. Journal of Water Resource, 1 (3), 216-225.
Shah, K. M., Khan, H., Jehanzeb. & Khan, Z. (2008). Impact of Agricultural Credit on Farm Productivity and Income of Farmers in Mountainous Agriculture in Northern Pakistan: A Case Study of Selected Villages in District Chitral. Sarhad Journal of Agriculture, 24 (4), 713-718.
Shrestha, M. (1992). Institutional Credit as a Catalyst for Agricultural Sector Growth: Evidence from Nepal. Journal of Economic Development, 17 (2), 137-144.
Toby, J. A., & Peterside, B. D. (2014). Analysis of the Role of Banks in Financing the Agriculture and Manufacturing Sectors in Nigeria. International Journal of Research in Business Management, 2 (2), 9-22.
UN: United Nations (2006), Building inclusive financial sectors for development. New York: The United Nations Department of Public Information.
Zuberi, H.A (1989). Production Function, Institutional Credit and Agriculture Development in Pakistan. The Pakistan Development Review, 28 (1), 43-56.