Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Sunday, May 26, 2019 10:21:24 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Education Banking

A 'need-based' approach to ensure sustainable education

Share your thought
Post a comment »
Read all () »

A. R. Farrukh Ahamed :
Education is universally recognized as a right, not a privilege. Unfortunately, this right is often interrupted due to fund unavailability of the education providers and the learners too. The Right to Education is guaranteed by many legal tools of the global bodies as well as by the Constitutions and Laws of the state parties. But in many developing and least developed countries like Bangladesh, this right cannot be fully implemented as there has been a shortage of investment in education. Though 'investment in education' is considered the most effective and trustworthy investment by all the stakeholders, but fund is still not ensured by the parties. In Bangladesh, the public investment in education is only 2 percent of the total GDP. Education experts often opine for the need of better allocating the national resources. To make the defence against low investment in education, they suggest for counting educational expenditures of all government agencies and household expenses. But no argument can deny the fact that the public investment in education in Bangladesh is low in comparison to similar direct public education budgets of other countries.
Hopefully, the government pledged to substantially raise it upto 4 percent to fulfil its 'commitment for education' in line with the SDG4. On the other, the scenario of private investment in education in Bangladesh shows no real picture at all. Educationists all over the world believe that education is a concern for all, including the Governments, Societies, Communities, Students, Parents and Employers. Therefore, the banking sector must not ignore its responsibility in providing services for education. As a significant stakeholder of the education, the role of the banks or financial institutions (FIs) is not clearly mentioned either in banking norms or in any other guidelines. In this context, the Financial Institutions should have operations in the education sector by pursuing new and innovative models of education service delivery and financing. Besides, under Public-Private Partnerships (PPPs), banks can contribute a lot for improving the quality and relevance of education, especially to raise the cost efficiency of education delivery, counting the disadvantaged marginalized groups also.
In this article, there is an effort to frame out a tool for education service delivery dubbed here as 'Education Banking'. Besides, it describes four other segments of this service delivery i.e. education savings, education financing, education loan including institution or student loan, and grant or scholarship for needy and meritorious learners. The motto of such banking is to facilitate the total education system, and therefore, it will not be confined in individual or personal banking, but should be based on educational institution. An institution shall be the consumer of the service and identify the need of the products from these four segments as per need and necessity. Profit margin is not the consideration while providing the service, but necessity of the institutions or students is the prime concern. Hence, this 'Education Banking' should be considered as 'need-based' service of the FIs.

However, funding necessity of the education has made the concept of 'Education Banking'. Though banks are serving the education with some of its existing products i.e. school banking as a savings tool for students, granting individual loan for education, providing scholarship under or out of Corporate Social Responsibility (CSR) and so on, but these are too scanty as per need of the total education funding. Besides, these products are scattered, and not under an integrated service. Moreover, these products are based on individual needs where educational institutions are mostly ignored. Scholarships or grants provided by the banks are allocated as per merit of the students or on the basis of their results where needs of the students are not evaluated to sustain their education. Education Banking shall serve the total education including both the institutions and the students under an integrated approach. It will be an example of the 'need-based' banking where needs of both the educational institutions and students will get the top priority.   
An education institution will be the agent (as well as client) of 'Education Banking' like traditional Agent Banking System of the banks. But it will provide only four services -namely students' savings, financing the institutions, granting loans to the students and teachers, and providing grants or scholarship as per needs of the students. The whole service will depend only on institution to grow up or to provide services in consultation with respective banks' authority.
There are four categories of educational institutions in Bangladesh, according to funding of the education institutions. They are (i) fully funded by the government; (ii) semi government (MPO guaranteed by the government); (iii) Trust or Society funded and (iv) private initiatives. The three segments of education system in Bangladesh i.e. Primary Education, Secondary and Higher Secondary Education and tertiary or higher education are covered with this funding method. There are ample scopes for the financial institutions to engage in these funding systems. They can work with the government and semi government educational institutions under PPP whereas Trust or Private initiatives can be more encouraged with banking involvement in education. Besides, every government and government affiliated educational institutions have to maintain two types of fund as obligation to run up their outlets. They are general funds and emergency funds. Emergency funds are maintained as fixed deposits in banks which cannot be used for general purposes whereas the general funds are used for daily expenditure of the institutions. Banks have the opportunity to use these funds and there should be guideline for the banks to invest these funds as per necessity of the respected educational institutions. Banks can consider the funds as security of their investment in addition to other movable or immovable assets of the institutions. Institutions as collaborator of the education banking, guide the financial institutions where to invest, how to recovery or who will be nominated for loans from teachers and students, or which students are eligible to get Scholarships or Grant in-aid.
(R. Farrukh Ahamed, Researcher on education, email: khosrubd@gmail.com))

Add Rate

News Archive

Inside The New Nation

Sports »

A scene from the fifth round matches of the Walton International Rating Chess Competition at Bangladesh Chess Federation hall-room on Saturday.

Cricket »

Rubel eyes to finish World Cup as one of top five boawlers

Bangladesh speedster Rubel Hossain insisted on Friday he wants to finish the ICC World Cup 2019 as one of the best five bowlers.The right-handed pacer recovered from a side strain that prevented him to play all the matches during Bangladesh recent tri-series in Ireland. Before the main assault in the ...

International »

US troop move to ME dangerous for international peace: Iran's FM

AFP, Tehran  :Iranian Foreign Minister Mohammad Javad Zarif said Saturday a US decision to deploy 1,500 additional troops to the Middle East is a "threat to international peace," state media reported."Increased US presence in our region is very dangerous and a threat to international peace and security and must be ...

Editorial »

Take time-befitting diplomatic steps

THOUGH the foreign relation of Dhaka with New Delhi and Beijing is remarkably good, it is not working well especially in the Rohingya issue. Dhaka had requested both the nations for several times to mount pressure on Myanmar for Rohingya repatriation, but they kept limited their efforts in extending 'assurance' ...

Entertainment »

Dimple Kapadia bagged Christopher Nolan`s Tenet

Dimple Kapadia featuring in Hollywood director Christopher Nolan's Tenet has got everyone excited. From Bollywood celebrities to regular moviegoers, everyone has expressed their delight and congratulated the actress on social media for her achievement.  Dimple Kapadia's manager revealed to a daily how the actress bagged the role. The manager shared ...

Front Page »

290 migrants rescued near Tripoli

Egypt Independent , Tripoli :Libya's coast guard rescued 290 migrants clinging to inflatable rafts on Friday in two operations near the capital Tripoli, a naval forces spokesman said.The western coast of Libya is the main departure point of hundreds of thousands of migrants fleeing their countries from wars and poverty ...

Editorial »

HC concern over slow pace of banning toxic food items

THE High Court on Thursday rebuked Bangladesh Food Safety Authority (BFSA) for its failure of removing and destroying 52 substandard food products from the market. The HC earlier ordered the BFSA removing the substandard goods of 43 companies from the market but the BFSA did nothing except publishing only a ...

Entertainment »

Poppy, Hasan Jahangir’s Eid drama Nayikar Honeymoon

Sheikh Arif Bulbon :National Film Award winner actress Poppy earlier acted with actor and play director Hasan Jahangir in Innocent Love, Bhalobasha Du’jonai, Mental and Nayikar Biye. On the occasion of coming Eid to telecast on Asian TV, Poppy again paired up with Hasan Jahangir in a drama titled Nayikar ...

International »

Taiwan holds first gay marriages in historic day for Asia

AP, Taipei :Hundreds of same-sex couples in Taiwan rushed to get married Friday, the first day a landmark decision that legalized same-sex marriage took effect.Taiwan became the first place in Asia to allow same-sex marriage last week in a legislative vote on a cause that the island's LGBT rights activists ...

Editorial »

DMP fails to discipline city roads

TRAFFIC jam is a common scenario almost everyday in the capital city Dhaka. Usually, it intensifies every year during the Ramzan. This year it is no exception. But sufferings of commuters have been increased manifold this year because of constructing metro rail projects and unplanned digging in different areas under ...

Cricket »

T20 kings West Indies seek to make fresh World Cup mark

Can the West Indies take the form that has made them such a potent force in Twenty20 cricket into the World Cup?That is the question confronting Jason Holder's side as they head into the one-day showpiece in England and Wales that starts on May 30.The Caribbean team, who open their ...

International »

May clings to power as Brexit gambit backfires

Reuters, London  :Prime Minister Theresa May was clinging on to power on Thursday after her final Brexit gambit backfired, overshadowing a European election that has shown a United Kingdom still riven by division over its EU divorce.May's departure will deepen the Brexit crisis as a new leader is likely to ...

Entertainment »

Momtaz performs with her daughters at Eid Ananda Mela

Entertainment Report :Legendary folk singer and Member of the Parliament Momtaz Begum has been passing best time in her career. Recently her mother Uzala Begum got Gorobini Maa award on International Mother’s Day. Basically Momtaz is delighted with her success. On May 19, Momtaz along with her two daughters - ...

Editorial »

BB failing to lead banking sector

WHEN there are huge frustrations among the political circle, civil society members and the ordinary masses over ongoing banking irregularities, at that time the High Court has halted the loan rescheduling facilities for defaulters till June 23, earlier offered by the central bank, the Bangladesh Bank. The HC on Tuesday ...

Sports »

With the world at her feet, Osaka takes Paris in her stride

AFP, Paris :Twelve months ago at Roland Garros, an embarrassed Naomi Osaka bristled at being hailed as the 'coolest thing' in tennis.Now, however, the 21-year-old Japanese returns to Paris as comfortably the sport's hottest ticket with the world number one billing, a bank balance bursting at the seams and on ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news