The Bangladesh economy has achieved notable progress over recent decades, driven by industrial expansion, export growth, infrastructure development, and sustained remittance inflows. Yet beneath this overall success lies a growing structural concern: economic activity and financial flows remain heavily concentrated in a few urban centres, particularly around Dhaka and Chittagong, leaving much of the country’s regional economy comparatively underdeveloped.
According to the Bangladesh Bank quarterly report (October–December 2025), total deposits in the banking sector stood at approximately 20,05,338 crore taka, while total outstanding loans reached around 17,77,316 crore taka by December 2025. While these figures reflect strong financial depth, their distribution reveals pronounced geographical imbalance.
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Urban–rural divide in financial access
Banking activity remains overwhelmingly urban-centric. Approximately 84% of total deposits originate from urban areas, compared to just 16% from rural regions. The disparity is even more striking in credit distribution, where nearly 92% of all loans are concentrated in urban centres, leaving rural areas with only 7–8%.
This imbalance indicates that rural communities continue to face limited access to formal financial services. As a result, local entrepreneurs struggle to secure investment capital, restricting job creation and slowing the development of small and medium-sized enterprises outside major cities.
Divisional concentration of deposits and credit
A closer look at divisional data highlights the dominance of a few regions:
| Division | Deposits (%) | Loans (%) |
|---|---|---|
| Dhaka | 60.32 | 67.34 |
| Chittagong | 21.36 | 19.40 |
| Khulna | 4.41 | 3.74 |
| Rajshahi | 4.18 | 3.72 |
| Sylhet | 4.00 | 1.07 |
| Barisal | 2.02 | 1.10 |
| Rangpur | 2.03 | 2.30 |
| Mymensingh | 1.68 | 1.33 |
The data shows that Dhaka alone accounts for over 60% of national deposits and nearly 67% of total lending activity, firmly establishing it as the country’s financial nucleus. Chittagong, while playing a vital secondary role due to its port-driven economy and industrial base, remains significantly behind Dhaka in financial concentration.
Other divisions such as Khulna and Rajshahi occupy mid-level positions, whereas Sylhet, Barisal, Rangpur, and Mymensingh lag significantly behind in both deposits and credit allocation.
Structural causes of imbalance
Several structural factors explain this concentration:
- Industrial and corporate headquarters are predominantly based in Dhaka
- Export-oriented manufacturing clusters are centred around Dhaka and surrounding areas
- Port-based trade reinforces Chittagong’s economic dominance
- Infrastructure quality, skilled labour availability, and connectivity are stronger in major cities
- Investors prefer established financial hubs to minimise risk
- Administrative and policy institutions remain centralised
Economic and social implications
This uneven distribution of financial resources carries serious long-term consequences. It deepens regional inequality, weakens rural economic structures, and accelerates migration towards major cities. As urban populations swell, cities face increasing pressure on housing, transport, healthcare, and utility services, while rural regions remain underutilised in terms of agricultural potential and human capital.
Ultimately, such concentration limits the country’s overall growth potential by preventing balanced utilisation of resources across regions.
Towards balanced development
International experiences from countries such as South Korea, Malaysia, and Vietnam demonstrate that sustained economic growth is best achieved through decentralisation and regional industrial policy. For Bangladesh, similar strategies may include expanding industrial zones outside major cities, strengthening rural financial inclusion through digital banking, improving transport and energy infrastructure, and encouraging SMEs in agriculture and manufacturing at the district level.
In conclusion, while the economy of Bangladesh remains fundamentally strong, its spatial imbalance poses a critical challenge. Sustainable development will depend on ensuring that financial opportunities and investment flows are distributed more equitably across all regions, rather than being concentrated in a few urban centres.