Pins in the Shoes of Microfinance

Role of microfinance to recuperate the economy of Bangladesh., 2020

“Microfinance” is the term which means that, providing financial services to the unbanked, rural, poor people who can’t be able to get conventional banking services. At present, there are 705 Microfinance Financial Institutions(MFI) in Bangladesh that actively working there to change the fate of the poor rural, and unbanked people. There are specific regulations that are fully abided by the MFIs in Bangladesh. In the 2018-19 fiscal year, these MFIs distribute 1201.91 Billion Takas as loans to the poor, unbanked people to change their fate by self-employment. By this amount, we can realize the role of MFIs in Bangladesh’s economy. But the present condition shuts the growth of that sector along with the growth of this economy. This pandemic hits upon all the sectors in Bangladesh and all over the world. In these circumstances, the researcher believes that microfinance can play a great role to recuperate the economy from this extreme economical hit. But the condition of MFIs is not good as well. They are facing liquidity crisis and recovery issues simultaneously. The researcher indicates some suggestions on these issue like government incentives, efficiency in management levels to recover due loan with affection for the clients, decentralization in management levels, cutting down administrative costs, flexibility in regulations for opening a new firm who can distribute small loan, etc. The researcher also assesses the present circumstances of MFIs by analyzing the previous financial trend of MFIs. By analyzing these data, the researcher has decided that microfinance can play a vital role to recuperate the economy of Bangladesh from this present pandemic hit by deciphering some problems related to these firms.

Global Journal of HUMAN-SOCIAL SCIENCE: E Economics Volume 18 Issue 7 Version 1.0 Year 2018 , 2018

The goal of this article is to inspect the current status, problems and, prospects of urban microfinance in Bangladesh. This article employs the descriptive research methods based on secondary data. This paper Illustrates the present scenario of urban microfinance by using tables, graphs and the trend analysis. This paper finds that the urban microfinance in Bangladesh has been growing tremendously during the last decades. During the 2006-2017 period, the number of members within the urban microfinance program has increased by 110.69%. Besides the amount of loan amount disbursed in the urban microfinance program has increased by 110.54 % during the last four years (2014-2017). Also, the rate of increases of the total net savings of the urban microfinance members (373.33%) was higher than the rate of increases of the total net savings of the rural microfinance members (152.36%) during the 2009-2017 period. The loan Interest rate varies in between 15% and 30%. With regards to recovering the loan amount, 95% of the microfinance institutions (MFIs) apply the flat interest rate while the remaining 5% of the MFIs use the declining method. TheProliferationoftheUrbanMicrofinanceanditsProblemsandProspectsinBangladesh Strictly as per the compliance and regulations of:

2016

This paper presents the findings of a study that investigated the impact of Microfinance Institutions in Bangladesh on the core poor i.e. those living on less than $1USD/day and the correlation between the presence of these institutions and poverty in the five Divisions that were examined in the country. Bangladesh is one of the most populous countries in the world with a high level of poverty. This study looked into the operations of these Microfinance Institutions between 1995 and 2005 to establish the correlation between their presence and the poverty level in the locations where they have a strong presence and a weak presence. The study looked into the efforts of Microfinance institutions in poverty alleviation to see if they focused solely on the poor or also catered to the challenges of the core (extremely) poor people that had no valuable possessions or collaterals to obtain loans from them in addition to examining the support of the top three Microfinance Institutions for th...

Economic Modelling, 2017

two anonymous referees and the editor of this journal. The usual disclaimer applies. 1 The term microfinance has a broader connotation than microcredit in so far as it also includes savings and insurance in addition to credit, although credit is by far the biggest component of microfinance almost everywhere, including Bangladesh. Note: Vi=sectoral value added, TV=total value added, Ei=sectoral export, Oi=sectoral output, TE=total export, Mi=sectoral import, TM=total import, TAR=tariff rate, All figures are expressed in percentages.

Policy Research Working Papers, 2004

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished.

2011

The study explores the microfinance industry in Bangladesh and India. Grameen Bank proved that financial inclusion of low-income households is the way out of poverty and that lending to poor can be profitable to both the borrower as well as the lender. Since then many microfinance institutions came up either following the same operating model as Grameen Bank or some form of its derivative. Many microfinance institutions (MFIs) in India started as non-profit NGOs and soon became for-profit nonbanking financial companies (NBFCs) reflecting the financial viability of these institutions. With high returns, promising growth and portfolio diversification capabilities, microfinance industry in India has become a hotspot for foreign as well as local investors. Apart from widely known benefits, the study also highlights the criticism and challenges faced by the microfinance industry worldwide.

2016

This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

This paper presents the findings of a study that investigated the impact of Microfinance Institutions in Bangladesh on the core poor i.e. those living on less than $1USD/day and the correlation between the presence of these institutions and poverty in the five Divisions that were examined in the country. Bangladesh is one of the most populous countries in the world with a high level of poverty. This study looked into the operations of these Microfinance Institutions between 1995 and 2005 to establish the correlation between their presence and the poverty level in the locations where they have a strong presence and a weak presence. The study looked into the efforts of Microfinance institutions in poverty alleviation to see if they focused solely on the poor or also catered to the challenges of the core (extremely) poor people that had no valuable possessions or collaterals to obtain loans from them in addition to examining the support of the top three Microfinance Institutions for the vulnerable especially poor women in terms of empowerment in the period under review. This paper concludes with implications of the presence of microfinance institutions for poverty reduction in a geographical location and recommendations for further research.