2007-03-03 22:07:24 · 2 answers · asked by riddhi d 1 in Business & Finance ➔ Other - Business & Finance
Well, Latin America (and especially Bolivia) and Central America countries are well advanced in microfinance (MF) What we can learn from them is that commercial banks can stimulate the MF industry by taking some share or even buying the most competitive microfinance institutions.
Once they collaborate or work together, the bank can offer the facilities of its branch network (with desks all around the country), money transfer and all other existing banking services to micro-entrepreneurs.
Bank cans work temporary with specialised consulting firms like ACCIÓN or IPC to launch a "downsize project", that means creating a project in the commercial banks to offer microfinance product services (credit, saving, insurance, transfer...) to its clients. During this period, the bank will learn how to manage micro-finance risks and to operate without losing money...
Go and check the ACCION website to have an idea of possible collaboration, they have just started working in India.
Hope this helps
2007-03-04 00:27:01 · answer #1 · answered by Pat le Pirate 3 · 0⤊ 0⤋
to flourish the microfinance.. the comm. banks.. can provide loans and advances at a lower rate... and extend the term.... since most of it will be in use of the agricultural sector... government can also offer some help...
2007-03-04 06:16:23 · answer #2 · answered by priyanka77_bhatia 2 · 0⤊ 0⤋