Abstract
Poor and underprivileged people should come under the banking system so that equitable distribution and social justice can be achieved. Informal sector is playing vital role than formal sector of the country. Micro savings should under the working purview of the micro investment for which social networking and community banking is needed. Research question of the sturdy is whether social networking and community banking can transform micro savings to micro investment? The theory was developed for considering financial inclusion, to attain equitable distribution and social justice. A theory was developed by Ali (2016) which need to be tested. The theory was also interlinked with some goals of Sustainable development goal. The theory which is in a process of development by Muhammad Mahboob Ali on Social networking, community banking and empowerment of people may be empirically tested in different countries of the world and also at Bangladesh by various researchers to give a structural formation, cost-benefit analysis, shadow pricing, validation and reliability of the theory in the real life situation both global and domestic perspectives with a request to inform the result to the author. Macroeconomic effect on the economy will be optimistic concluded arranging community banking which will work as financial intermediate between micro savings and micro investment.
Highlights
Poor people of the country often did not getting any sort of banking services
Social networking and community banking may be applied for transforming micro savings to micro investment through creating social capital
Situation of the Gini coefficient ought to improve so that social justice and equitable distribution can be arranged and removing income inequality can be attained in the country
Summary
Poor people of the country often did not getting any sort of banking services. Without banking involvement they have to depend on informal sector. As such informal sector have been playing vital role in the economy without accountability and transparency. In case of Pareto’s optimality criteria of utility theory, Hicks, Kaldor and Scitovsky described that social welfare could be increased without making value judgments. As such Pareto optimality of the people can be attained in line of social welfare so that compensation package can be attained. Govt. needs to set up some procedure of redistribution, arranging equitable righteousness, removing income inequality and to attain social justice
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