Microfinance lending technologies and their impact on the sustainability of financial institutions: A comparative review of crit

Microfinance lending technologies and their impact on the sustainability of financial institutions: A comparative review of crit Coursework example
High school
Coursework
Finance & Accounting
Pages 12 (3012 words)
Download 0
Microfinance lending technologies and their impact on the sustainability of financial institutions: A comparative review of critical issues Introduction Making finance available or Lending to poor and low income group has been the greatest challenge to the developing and underdeveloped countries throughout the world…

Introduction

Muhammed Yunus and the Grameen Bank, [Bangladesh]”. (Hasan, Hassan & Uddin, 2009, p. 318) Though primarily aims to provide finance to the poorer sections of the society, the people belonging to unorganized sector, especially self-employed or unsalaried without any collateral, the concept of microfinance is not limited to lending, and covers wide range of financial services needed for the development of the communities. The paper discusses about the corporate governance, the objectives microfinance institutions, theoretical background, critical success factors (CSF), future of MFIs per se and with reference to its implications on the development of the society and sustainability. Therefore, it is essential to view microfinance from social angle as well, rather than business angle alone in the interest of a sound and balanced growth of the society for making microfinance as the powerhouse for social development. Objectives of Microfinance Institutions (MFIs) Poverty alleviation is the primary objective of the developmental policy of microfinance through financial inclusion of the people who do not have access to financial institutions. However, sustainability factor is important for the success of the MFIs in the long run. Sustainable MFIs can expand to cover more areas and people. ...
Download paper
Not exactly what you need?

Related papers

Financial Institutions
After reviewing the trend in banking branches, it is determined that there is a huge increase in bank branches then in 1934. Bank branches were very almost nonexistent in the 1930’s and increased as time went on. The increase in branches has shown a steady decrease in institutions. These increases and decreases show an overall increase in facilities. It seems that the public has more access to…
Financial Markets and Institutions
Financial intermediaries have played a major role the development and growth of the world’s economy. The financial institutions such as banks and other financial institutions such as microfinance institutions, investment ventures, and Sacco’s provide funds for the development of businesses operations. The Financial intermediaries help investors to save to improve their living conditions. For…
Financial Institutions & Markets - Financial Innovation
Individuals and business concerns now have a wider range of options with respect to different types of borrowing facilities available to them. However, the recent Global Financial Crisis (GFC) is argued to be the result of this financial innovation. As a result of that most of the monetary policy makers have tightened their regulatory policies and have imposed several restrictions on the financial…
Dodd Frank: A Review and Analysis from the Perspective of Small Financial Institutions
At face value and according to the politicians that so vigorously promoted the bill, it was intended and marketed as a means of reining the previously un-restrained financial greed that ultimately precipitated the financial collapse of 2007/2008. Yet, regardless of how well-intentioned the act might have been, the fact of the matter is that it ultimately served to integrate a great deal of harm…
Financial Markets and Institutions
economy, impact of recent monetary policy on U.S. economy and the strategy for the use of bond markets. Foreign Exchange Market The foreign exchange market is an over-the-counter (OTC) market. The participants of foreign exchange markets are portfolio managers, importers and exporters, commercial banks, central banks, and foreign currency brokers. Types of Transaction and their benefits There are…
Impact of Microfinance on Developing Countries
With no access to financial systems, the poor have to define new informal ways through which they have to guarantee their financial survival while at the same time obtaining seed capital for development. Such informal community based institutions are meant to meet their daily and long-term financial needs, a gap that is perfectly filled by the micro financial institutions (Jegede, Kehinde & Hamed,…
Microfinance Institutions
Between the 1950s and the 70s, governments and donors used to channel funds to the poor communities for development through rural credit programmes, with most of these funds being subsidised. The results were high loan default rates and high loses that made it impossible to reach the targeted rural poor households (Anyanwu, 2004). In the early 1980s, the history of microfinance institutions gained…