The view from the field: Perspectives from managers of microfinance institutions

Abstract

By examining three different institutional frameworks and performances, this paper portrays the challenges and potential for microfinance programmes to solve some of the key constraints in the field today. Tracing the growth of BancoSol, a new, private Bolivian commercial bank dedicated almost exclusively to microenterprise, many lessons about the institutional development of profitable micro-lending organizations emerge. The Kenya Rural Enterprise Programme provides evidence of the complementary roles technical assistance and other NGO services play in the strengthening of both microenterprises and microfinance programmes. Finally, the long track record and diverse lending programmes of Thailand's Bank for Agriculture and Agricultural Cooperatives draw lessons in the criteria and methods of effective financial intermediation. Elements of success and diffefences among the cases are highlighted.

Innovative Transposition of Trust Mechanisms in Social Lending Groups from Offline to Online

“…While scale on its own increases or reduces the affective element, this can be overcome by retaining the local‐based structure, permitting higher group integration at the lower levels. However, large cooperatives may work like banks and MFIs and do group lending, as is the case of Thailand's Bank for Agriculture and Agricultural Cooperatives (BAAC), which organizes farmers in joint‐liability groups of 5 to 30 (Mutua et al ., ). A similar case exists in Bulgaria, where Catholic Relief Services aids cooperatives of 10 to 24 people who have solidarity groups of 3 to 5 members within the cooperative, similar to the Grameen Bank's groups.…”

“…Strategic Change DOI: 10.1002/jsc group lending, as is the case of Th ailand ' s Bank for Agriculture and Agricultural Cooperatives (BAAC), which organizes farmers in joint-liability groups of 5 to 30 ( Mutua et al ., 1996 ). A similar case exists in Bulgaria, where Catholic Relief Services aids cooperatives of 10 to 24 people who have solidarity groups of 3 to 5 members within the cooperative, similar to the Grameen Bank ' s groups.…”

Empowering Women through Microfinance: Catalizing Societal Transformation via Entrepreneurship

“…It has changed the way we think about people who don't have much money as customers for financial services. It proved that they could use banking services, introduced different ways of lending to make financial services more reachable for them, and gathered a lot of money through social investments to help those in need (Mutua et al, 1996).…”

The Role Of Microfinance In Poverty Reduction: Countries Experiences by Regions 2000-2018

“…The fame gained by the Microfinance industry addresses a massive achievement taken inside a verifiable system. It changed preconceived notions of the poor as purchasers of monetary administrations, broke preconceived notions of the poor as unbankable, presented a variety of loaning strategies demonstrating that it is possible to offer savvy economic types of assistance to poor people, and activated a large sum of "social speculation" for poor people (Mutua, Nataradol, Otero, & Chung, 1996).…”