Factors affecting organizational transparency of Microfinance institutions Empirical evidence from microfinance institutions in sub-Saharan Africa. 1. INTRODUCTION Microfinance institutions (MFIs) are established to serve the poor through providing financial services such as loans, savings, remittance services, insurance, trainings and technical assistances etc(Callaghan et al. 2007; Mersland, 2009). Unlike other firms, microfinance institutions are expected to meet two objectives, namely financial
(country name) 8. Impact of gross loan portfolio on microfinance value saving comparison between microfinance institutions and microfinance banks 9. Impact of interest rate on stock market 10. A study based on the effects of interest rate on share price 11. Comparison of micro finance institutions, micro-finance banks and micro finance institutions and development of entrepreneurial skills 12. Empowering women though microfinance 13. Banking and currency crisis causality from banks
these have been extremely useful, there are two major problems that need to be resolved. One of these is the high cost of finance in the interest-oriented microfinance system. A timely study by Dr. Qazi Kholiquzzaman Ahmed, President of the Bangladesh Economic Association, has revealed that the effective rate of interest charged by microfinance institutions, including the Grameen Bank, turns out to be as high as 30 to 45 percent.10 This causes serious hardship to the borrowers in servicing their debt
institutional funding and multifaceted organizations structuring special credit facilities to safeguard that liquidity for the microfinance sector. At the similar time, we have realised that as microfinance markets become flooded (particularly in urban areas), struggle is likely to lead to cross-lending and over-indebtedness. Similar to global crisis that follow explosions, crisis in microfinance are also a prey of their own runaway success. Though to a significant degree confined from the effects of international
Primary Mortgage Institutions, 5 Microfinance Banks and 581 Registered Insurance Brokers (CBN, 2006). These are explained in turn. The Banks and Non-Bank Financial Institutions comprise the money market with the following institutions: Deposit Money Banks (DMBs), the Discount Houses (DHs), the Development Finance Institutions (DFIs)/Specialized Banks which are further subdivided into Urban Development Bank (UDB), the Nigerian Export-Import Bank (NEXIM) and the microfinance banks. Besides the money market
................... 83 Annexes ..................................................................................................................................... 86 v List of Tables 2.1: Relative importance of insurance, banking and microfinance institution ........................ 37 3.1: Gross profit to capital ratio of banks during the pre-reform period .................................. 40 3.2: Gross profit to capital ratio of banks during the post-reform period ..................
enterprise; - Micro-entities; - Small businesses; - Subjects of medium-sized businesses - Subjects of big business. The variety of different classification characteristics of farms is the subjects, the possible combinations complicate the microfinance mechanism of this section of the financial system, require constant improvement, and a clear legislative order of activities, a well functioning management and control of financial processes [5]. Conclusion: as a result of the above can be summarized
would be encouraged in different production lines and tendency towards indiscriminate increase in capital intensity would be discouraged. 4. Besides reorienting public sector investment towards employment including sectors and lines of production, macro economic fiscal and credit policies would be used for more effectively influencing private investment decisions in favour of sectors and technologies with high employment potential. At the beginning of 1990-91, about 16 million persons – 10 million
to lead the recovery with growth rates of around 6 percent. High-income countries' growth is expected to accelerate from about 2-2.3 percent in 2010 to between 2.3 and 2.7 percent in 2012. Although the global financial crisis has had important consequences for economic activity in South Asia, that impact was much less pronounced than in all other developing regions save East Asia. Regional economic activity benefitted from limited exposures to the subprime markets and global banking systems-as the
microcredit, skill development and employment generation. It is estimated that nearly 80 percent of the villages in Bangladesh are now covered under NGO activities but not necessarily 80 percent of the poor who need help. About 1,000 NGOs are engaged in microfinance operations. The following programs taken by PROSHIKA for Poverty alleviation: ❖ Urban Poor Development Program: To reduce the vulnerability of the urban poor and restore their rights to food, education and health, PROSHIKA has adopted a