Banking on the Poor? Branch Placement and Non-Farm Rural Development in Bangladesh

________________________________________________________________________ We assess whether bank branch placement in Bangladesh responds to any unexploited potential for non-farm rural development. The location choices of the famous Grameen Bank are compared to those of more traditional banks. We allow for heterogeneity in household characteristics conducive to success in non-farm activities when measuring the potential gains from switching out of farming. Farmers are both poor, and poorly equipped for success at nonfarm enterprises. Even so, seemingly feasible, but unrealized, gains from switching are evident. Grameen Bank is attracted to areas where those gains favor the poor. Other banks put higher weight on potential gains to the non-poor. ______________________________________________________________________________