The Scaling-Up of Microfinance in Bangladesh: Determinants, Impact, and Lessons
The microfinance industry in Bangladesh
currently provides access to credit to around 13 million
poor households. The author describes the factors that led
to the scaling-up of micro-credit in Bangladesh, the impact
this has had on the poor, future challenges in Bangladesh,
and possible lessons for other countries. The consensus in
the literature is that micro-credit plays a significant role
in reducing household vulnerability to a number of risks and
that it contributes to improving social indicators. The
author argues that strategic donor investments in a handful
of well-managed institutions that offer a simple, easily
replicable financial product could lead to large gains in
access to finance for the poor. However, this approach could
sacrifice other objectives of financial sector development,
such as product and institutional diversity, which could be
promoted after the initial expansion has taken place.
Governments can also have a crucial role in promoting access
to microfinance by ensuring macroeconomic stability,
enforcing a simple regulatory structure, and developing
communications networks that reduce transaction costs.
Another lesson is that while visionary leadership cannot
simply be franchised, the internal management systems that
led to the scaling-up can be replicated in other settings.
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Bibliographic Details
| Main Author: |
Zaman, Hassan |
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, D.C.
2004-09
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| Subjects: | ACCOUNTABILITY,
APEX,
APEX INSTITUTIONS,
AUDITS,
AUTONOMY,
BORROWING,
CAPITAL BASE,
CAPITALIZATION,
CIVIL SERVICE,
COMMERCIAL BANKS,
CONSOLIDATION,
CONSUMPTION SMOOTHING,
CORPORATE GOVERNANCE,
CURRENT ACCOUNT,
DECISION MAKING,
DEFICITS,
DEPOSITS,
ECONOMIC GROWTH,
ECONOMIC STABILITY,
ECONOMICS,
EMPLOYMENT,
EXCHANGE RATE,
EXPENDITURE,
EXTENSION SERVICES,
EXTERNAL AUDITS,
FINANCIAL ASSISTANCE,
FINANCIAL SECTOR,
FINANCIAL SERVICES,
FINANCIAL SYSTEM,
FINANCIAL TRANSACTIONS,
FLOODS,
GOVERNMENT REGULATIONS,
GRAMEEN BANK,
HOUSEHOLDS,
INFLATION,
INSURANCE,
INTEREST INCOME,
INTEREST RATES,
INTERNAL CONTROLS,
LEGISLATION,
LENDING RATES,
LEVEL PLAYING FIELD,
LIFE INSURANCE,
LINKAGES,
LITERACY,
LOAN REPAYMENT,
LOAN SIZE,
MANAGEMENT INFORMATION SYSTEMS,
MARGINS,
MICROCREDIT,
MICROCREDIT PROGRAMS,
MICROENTERPRISE,
MICROFINANCE,
MICROFINANCE INDUSTRY,
MICROFINANCE INSTITUTIONS,
MICROFINANCE ORGANIZATIONS,
MICROFINANCE SECTOR,
NATURAL DISASTERS,
NONFINANCIAL SERVICES,
OPERATING COSTS,
OUTREACH,
POOR HOUSEHOLDS,
POPULATION DENSITY,
POVERTY LINE,
PURCHASES,
REGULATORY FRAMEWORK,
RURAL CREDIT,
RURAL DEVELOPMENT,
SANITATION,
SAVINGS,
SAVINGS MOBILIZATION,
SUSTAINABILITY,
TRANSACTION COSTS,
URBAN AREAS, |
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| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5138609/scaling-up-microfinance-bangladesh-determinants-impact-lessons
https://hdl.handle.net/10986/14137
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