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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dig-okr-10986141372024-08-08T17:30:47Z The Scaling-Up of Microfinance in Bangladesh: Determinants, Impact, and Lessons Zaman, Hassan 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 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. 2013-06-24T14:20:38Z 2013-06-24T14:20:38Z 2004-09 http://documents.worldbank.org/curated/en/2004/09/5138609/scaling-up-microfinance-bangladesh-determinants-impact-lessons https://hdl.handle.net/10986/14137 English en_US Policy Research Working Paper;No.3398 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, D.C. |
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Banco Mundial |
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Estados Unidos |
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US |
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Bibliográfico |
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Biblioteca del Banco Mundial |
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English en_US |
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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 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 |
| spellingShingle |
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 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 Zaman, Hassan The Scaling-Up of Microfinance in Bangladesh: Determinants, Impact, and Lessons |
| description |
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. |
| topic_facet |
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 |
| author |
Zaman, Hassan |
| author_facet |
Zaman, Hassan |
| author_sort |
Zaman, Hassan |
| title |
The Scaling-Up of Microfinance in Bangladesh: Determinants, Impact, and Lessons |
| title_short |
The Scaling-Up of Microfinance in Bangladesh: Determinants, Impact, and Lessons |
| title_full |
The Scaling-Up of Microfinance in Bangladesh: Determinants, Impact, and Lessons |
| title_fullStr |
The Scaling-Up of Microfinance in Bangladesh: Determinants, Impact, and Lessons |
| title_full_unstemmed |
The Scaling-Up of Microfinance in Bangladesh: Determinants, Impact, and Lessons |
| title_sort |
scaling-up of microfinance in bangladesh: determinants, impact, and lessons |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2004-09 |
| url |
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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