Microfinance as a Regular Commercial Banking Product
Hatton National Bank is the largest
private commercial bank in Sri Lanka and one of the handful
of commercial banks in the world that have initiated
microfinance programs. The bank launched its program in 1989
as an integral part of its operations, motivated by two
business objectives. First, the program aims to protect the
bank s market share from state-owned rural banks and nonbank
microfinance institutions such as credit cooperatives,
especially in rural and semiurban areas, where more than 75
percent of the country s population lives. Second, the
program is an investment in the future: it targets
microfinance clients with the potential to grow into small
enterprises in the formal sector. This Note profiles Hatton
National Bank's microfinance operations, highlighting
two questions: How does a privately owned bank downscale
part of its operations for microfinance? Is microfinance
consistent with profit orientation?
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Bibliographic Details
| Main Authors: |
Gallardo, Joselito S.,
Randhawa, Bikki K.,
Sacay, Orlando J. |
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| Language: | English |
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| Published: |
World Bank, Washington, DC
1997-11
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| Subjects: | ACCOUNTING,
ADMINISTRATIVE COSTS,
ASSET TURNOVER,
AUTONOMY,
BANK,
BANKING SERVICES,
BRANCHES,
CAPITAL ADEQUACY,
CAPITAL LOANS,
COLLATERAL,
COMMERCIAL BANKS,
COMMERCIAL LOANS,
CORPORATE RESTRUCTURING,
DEPOSIT MOBILIZATION,
DEPOSITS,
EARNING POWER,
EQUITY FINANCING,
EXPANSION,
FINANCIAL DATA,
FINANCIAL REPORTING,
GROSS REVENUES,
INDONESIA,
INTEREST EXPENSE,
INTEREST RATES,
INTERNATIONAL BANKING,
INVESTMENT BANKING,
LOAN LOSS PROVISIONS,
MANAGEMENT REPORTS,
MATURITIES,
MICROENTERPRISES,
MICROFINANCE,
MICROFINANCE PROGRAMS,
MICROLOANS,
MORTGAGE LOANS,
OPERATING EXPENSES,
PRODUCTIVITY,
PROFITABILITY,
RURAL BANKS,
SAVINGS,
SAVINGS ACCOUNTS,
SMALL ENTERPRISES,
SUSTAINABILITY,
TIME DEPOSITS,
TRANSACTION COSTS,
UNSECURED LOANS MICROFINANCE,
POVERTY ASSESSMENTS,
POVERTY REDUCTION,
POVERTY MITIGATION,
LOAN REPAYMENTS,
LOAN INVESTMENTS,
MICRO-CREDIT PROGRAMS,
RURAL AREAS,
COMMUNITY PARTICIPATION,
DATA COLLECTING,
DATA BASE MANAGEMENT SYSTEMS,
OPERATING COSTS,
BANKING SYSTEMS,
PERFORMANCE CRITERIA,
PERFORMANCE EVALUATION,
PERFORMANCE STANDARDS,
BANKING REGULATIONS, |
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| Online Access: | http://documents.worldbank.org/curated/en/1997/11/441755/microfinance-regular-commercial-banking-product
https://hdl.handle.net/10986/11567
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