Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Sunday, August 18, 2019 05:43:40 AM
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

Editorial »

Jugglery of growth figures failed to create jobs

BANGLADESH'S economic growth though mesmerising, it has been proved over the past decade that jobs could not be created proportionately for the youths keeping adjustment with the growth. Besides, female participation in the labour force shrank in the last nine years, especially in rural areas. As a result employment elasticity, ...

Cricket »

Mashrafe seeks two months to ponder about his retirement

The Bangladesh Cricket Board (BCB) has shelved the idea of arranging a one-off ODI against Zimbabwe to give Mashrafe Bin Mortaza a grand farewell after the ODI captain asked the board to give him two months to think about his future.The decision to cancel the plan came after BCB president ...

Football »

Guardiola backs Sterling to reach 30-goal mark

AFP, Manchester :Pep Guardiola wants to see the on-form Raheem Sterling break the 30-goal barrier for the first time in his career this season, but will only judge the England forward on his overall contribution to the Manchester City team.Sterling has started the new campaign in prolific form, scoring in ...

City »

Bangabandu Sangskritik Jote paid tributes to Poet Shamsur Rahman by placing floral wreaths at his grave in the city's Banani on Saturday marking the 13th death anniversary of the poet.

International »

Hundreds defy restrictions, join protests in Kashmir

AP, New Delhi :Hundreds of people protested an unprecedented security crackdown and clashed with police Friday in Indian-controlled Kashmir, as India's government said it was constantly reviewing the situation in the disputed region and the restrictions there will be removed over the next few days.The U.N. Security Council met on ...

International »

Discussions on Afghan peace deal go ‘very well’, says Trump's spokesman

The White House says President Donald Trump's talks with his national security advisers to discuss Afghan peace talks went "very well" and that negotiations with the Taliban "are proceeding."Officials on August 16 said Trump was meeting with his top advisers to review negotiations with the extremist group about a possible ...

Entertainment »

Kona finally admits her secret marriage

Entertainment Desk :Popular singer Dilshad Nahar Kona revealed  on Thursday  that she had tied the knot with the person she loved, on April 21 of this year. Her husband, Golam Md Iftekhar, is a businessman, and has been in a relationship with Kona for seven years.Kona was heard saying to ...

Editorial »

Clashes among groups of govt followers on national mourning day

NEWSPAPERS reported that at least 22 people, including former Awami League lawmaker of Nilphamari-3 and upazila unit AL vice-president Golam Mustafa, were injured in a clash between two rival groups of the party in Jaldhaka of Nilphamari on Thursday. The clash took place when the groups hosted separate programmes to ...

City »

China-Bangla Friendship Association (CBFA) led by its President Dr Monouar Hasnat Khan and General Secretary Dr S.M Shahidul Islam placing wreaths at the Memorial Plaque of Father of the Nation Bangabandhu Sheikh Mujibur Rahman at 32 , Dhanmondi in the city on Thursday marking National Mourning Day .


Cricket »

England 258 all out in second Ashes Test

AFP, London :England were dismissed for 258 by Australia in the second Ashes Test at Lord's on Thursday.Only opener Rory Burns (53) and wicketkeeper Jonny Bairstow, last man out for 52, passed fifty after England were sent into bat by Australia captain Tim Paine following a total washout of Wednesday's ...

International »

Malaysia to question Zakir Naik for comments against Malaysian Hindus

Reuters, Kuala Lumpur :Malaysian authorities will summon controversial Islamic preacher Zakir Naik for questioning after he allegedly made racially sensitive remarks in the multi-ethnic nation, the government said on Thursday.The move comes after several ministers demanded Naik's expulsion on Wednesday after he said Hindus in Malaysia had "100 times more ...

Editorial »

Destroying biodiversity and its possible dangerous impact on human existence

BIODIVERSITY in Moulvibazar's Lathitila has been facing serious threat as settlers continue clearing forest areas for fruit cultivation and fish farming. According to newspaper reports, the vegetation at 5631.4 acres of land covered with hillocks is under continuous danger. Though only 30 landless families were allowed to settle inside the ...

Cricket »

BCB to discuss with Mashrafe about his retirement plan

The Bangladesh Cricket Board (BCB) will talk to Mashrafe Bin Mortaza within couple of days to know his retirement plan as the board has a plan to give the ODI captain a grand farewell.On multiple occasions, Mashrafe said he has not many cricket ahead, but he actually did not reveal ...

International »

Saudi woman activist rejects release deal tied to denying torture

Reuters, Riyadh :Prominent Saudi women's rights activist Loujain al-Hathloul has rejected a proposal to secure her release from prison in exchange for a video statement denying reports she was tortured in custody, her family said on Tuesday.Hathloul, along with at least a dozen other women's rights activists, were arrested over ...

International »

Pelosi vows to thwart US-UK trade deal if Brexit risks Irish peace

The top Democrat in the US Congress warned Wednesday that lawmakers would block a trade pact with Britain if its exit from the EU undermines Northern Ireland's peace accord.President Donald Trump and senior advisors to Britain's new Prime Minister Boris Johnson have spoken of fast-tracking a trade deal once Brexit ...

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