Dhaka, Nov. 23 -- How is it that Bangladeshis save, yet the country is not truly becoming wealthier? Why does so little of that hard-earned money find its way into productive ventures, businesses, or the capital market? What is stopping Bangladeshis from moving from "saving for safety" to "investing for growth"?

Bangladesh had nearly closed the savings gap which is gross domestic savings as per cent of GDP with its South Asian peers a few years ago, but the persistent inflation has partially eroded real disposable incomes and household saving capacity.

Yet, the funds that are saved rarely translate into productive investment. A significant share remains locked in low-yield bank deposits or government savings instruments such as Sanchaya...