Financial inclusion has emerged as a central development priority in many emerging economies, particularly in Bangladesh, where policymakers view inclusive finance as a key instrument for poverty alleviation, social equity, and sustainable economic growth. In response, commercial banks increasingly communicate their financial inclusion initiatives through corporate disclosures, especially in annual reports. While prior research has extensively examined the economic outcomes, determinants, and performance implications of financial inclusion, relatively little attention has been paid to how banks communicate financial inclusion and the legitimacy claims embedded in these narratives. Drawing on Suchman’s (1995) typology, this paper aims to fill the gap by examining the moral legitimacy-seeking language in financial inclusion-related disclosures in the annual reports of banking companies in Bangladesh.
The study employs content analysis and interpretive textual analysis of financial inclusion-related disclosures in the annual reports of all banks listed on the Dhaka Stock Exchange (DSE).
The findings reveal that banks frame financial inclusion primarily as a socially desirable and ethically grounded activity, seeking procedural legitimacy through inclusive financial products and delivery mechanisms, consequential legitimacy by emphasizing positive social outcomes, structural legitimacy through the expansion of branches, agent banking, and digital infrastructure, and personal legitimacy via references to leadership commitment and values.
The findings offer implications for regulators and policymakers seeking to enhance the transparency and social accountability of financial institutions.
By explicitly linking financial inclusion disclosures to Suchman’s (1995) multiple dimensions of moral legitimacy, this study advances the financial inclusion literature beyond disclosure volume and highlights how banks in an emerging economy construct accountability narratives aligned with national development priorities and the Sustainable Development Goals.
