Microcredit Governance

The Transferability of Financial Inclusion Models: A Process-Based Approach

“…The first trigger— presence of motivated leaders committed to community value s—corroborates the extant literature (Moreno, 2011; Renteria, 1996). The second trigger— selection of bank members by the community —also deserves attention.…”

“…Three of the barriers—lack of basic infrastructure for launching a community bank, lack of management experience and skills within the community, and lack of guarantees of medium- and long-term financial support—have already been mentioned by microfinance authors (Boily, 1999; Buchenau, 1997; Klein et al, 1999; Moreno, 2011; Renteria, 1996; Riedinger, 1994; Yaron, 1994). These barriers are mostly related to the low development level that characterizes areas where excluded people live.…”

“…While a number of authors are specific, mentioning the importance of having skilled credit analysts in the community (Buchenau, 1997;Yaron, 1994), others stress that everyone involved in the implementation must be highly motivated and committed to social inclusion values. Moreno (2011) argues that a motivated and socially oriented staff can build rapport and interact with the local community, adapting the model to one suitable for the poor. Renteria (1996) Hossain and Diaz (1997); Hulme (1990); Auwal (1996); Seibel and Torres (1999); Boily (1999) Existence of a basic infrastructure Riedinger (1994); Yaron (1994); Buchenau (1997); Klein, Meyer, Hannig, Burnett, and Fiebig (1999); Boily (1999) Access to external financial support People Skilled credit analysts Motivated staff committed to social inclusion values Renteria (1996); Moreno (2011) Commitment of leaders to maintaining focus on the poor Renteria (1996); Moreno (2011); Seibel and Torres (1999); Gibbons (1999) Practices that could facilitate transferability Main authors-Microfinance literature…”

“…While a number of authors are specific, mentioning the importance of having skilled credit analysts in the community (Buchenau, 1997; Yaron, 1994), others stress that everyone involved in the implementation must be highly motivated and committed to social inclusion values. Moreno (2011) argues that a motivated and socially oriented staff can build rapport and interact with the local community, adapting the model to one suitable for the poor. Renteria (1996) associates this condition with that of leadership.…”