...Group on Savings Mobilization RURAL BANK OF PANABO (RBP), PHILIPPINES (CASE STUDY) Ulrich Wehnert Eschborn, 1999 CGAP Working Group on Savings Mobilization CONTENTS ABBREVIATIONS LIST OF TABLES AND GRAPHS 1 CONTEXT 1.1 1.2 Macroeconomic context iv v 1 1 Context of the financial sector 1 1.2.1 Role of the central bank 1 1.2.2 Regulation and supervision 2 1.2.3 General development and characteristics of the financial sector 3 1.2.4 The impact of the Asian financial and economic crisis on the financial sector4 1.2.5 Outreach and characteristics of state interventions 4 1.2.6 Social security system 5 Social and socio-cultural context Classification of the macroeconomic, financial and socio-cultural context 5 6 7 7 8 8 9 11 11 11 12 1.3 1.4 2 INSTITUTIONAL ANALYSIS 2.1 2.2 General characteristics of the Rural Bank of Panabo Institutional type, governance and organizational structure 2.2.1 Institutional type and governance 2.2.2 Organizational structure 2.2.3 Lessons learned in institutional type, governance and organizational structure 2.2.3.1 Success factors 2.2.3.2 Limitations and risks 2.2.3.3 Possibilities of replication 2.3 Demand-oriented savings products and technologies 12 2.3.1 Characteristics of demand-oriented savings products and savings technologies 12 2.3.2 Design of demand-oriented savings products 13 2.3.3 Procedures to introduce demand-oriented savings products 13 2.3.4 Lessons learned in the design and handling of demand-oriented savings products...
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...come on by leaps and bounds in terms of size and reputation. Despite this, the industry is still only in its adolescence and our understanding of why and how poor and very poor people use microfinancial services ( and why many choose not to use the services that are available) remains partial at best. This essay takes the reader on a ‘voyage of discovery’ that seeks to both deepen her/his understanding and encourage her/him to apply that knowledge to the practice of microfinance. The voyage that Stuart Rutherford offers is a unique one based upon years of careful and detailed personal research. It does not take a deductive approach that develops a theoretical model of the financial behaviour of poor people. Nor does it follow the ‘case study plus best practice’ approach that has been favoured by many practitioners when they write of microfinance. Instead, it adopts an inductive approach - based on thousands of conversations and meetings with poor people discussing what financial services they use and need - backed up by the personal experience of running an experimental microfinance institution (SafeSave). This is an innovative methodology and one that courts considerable risks, not least that it might produce many interesting insights but no clear analysis. However, by tempering reflection with action research these risks are...
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...India originated in the first decade of 18th century. The first banks were, The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. Early history The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term. The American Civil War stopped the supply of cotton to Lancashire from the Confederate States. Promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking...
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... DEDICATION To the memory of my grand father Daniel Egeyu Whose love & enthusiasm for academia first kindled mine? ABSTRACT This research study investigates the impact of microfinance institutions on entrepreneurial development of Small & Micro-enterprises (SMEs) that are craving for growth and development in a war revived district called Gulu. The researcher used questionnaire as an instrument of primary data collection. Tables and simple percentages were used in data presentation. For clear analysis, the study centers on two broad variables; the dependent variable which is entrepreneurial development and the independent variable which is microfinance institutions. Three different hypotheses were formulated and tested using various statistical tools such as chi-square test, analysis of variance and simple regression analysis. The study reveals that (i) there is a significant difference in the number of entrepreneurs who used microfinance institutions and those who do not use them; (ii) there is a significant effect of microfinance institutions activities in predicting entrepreneurial productivity; and (iii) that there is no significant effect of microfinance institutions activities in predicting entrepreneurial development. The researcher concludes that microfinance institutions world over and especially in Gulu are identified to be one of the key players in the financial industry that have positively affected...
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...ADB ASA BBS BDT BEES BIDS BKB BMDA BRAC BRDB BSBL CARB CBO CBN CDF CFPR CIDA COSOP CPD DANIDA DFID DOL DOF EC FSP FSS FY GB GDP GOB HCP HIES IBBL IFAD IGA IGVGD InM JC LGED ME MFMSP Asian Development Bank Bangladeshi NGO (formerly Association for Social Advancement) Bangladesh Bureau of Statistics Bangladesh Taka Bangladesh Extension Education Services Bangladesh Institute of Development Studies Bangladesh Krishi Bank Barind Multi-Purpose Development Authority Building Resources Across Communities (Largest NGO) [Formerly Bangladesh Rural Advancement Committee] Bangladesh Rural Development Board Bangladesh Sanchya Bank Limited Center for Agricultural Research-Barind (a Bangladeshi MFI) Community Based Organization Cost-of-basic-needs Credit and Development Forum Challenging the Frontiers of Poverty Reduction Programme Canadian International Development Agency Country Strategic Opportunities Paper (of IFAD) Centre for Policy Dialogue Danish International Development Agency Department for International Development Department of Livestock Department of Fisheries European Commission Financial Service for the Poorest Financial Self-sufficiency Fiscal Year Grameen Bank Gross Domestic Product Government of Bangladesh Hardcore Poor Program Household Income and Expenditure Survey Islami Bank Bangladesh Limited International Fund for Agricultural...
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...Sustainability of Microfinance Self Help Groups in India: Would Federating Help? Ajai Nair, Graduate Student Woodrow Wilson School of Public and International Affairs Princeton University Abstract Self Help Group (SHG) banking is the primary mode of microfinance in India today, reaching over six million families. In spite of its considerable outreach, successful savings mobilization and high repayment rates, as with most other microfinance models, the financial viability of SHG banking has not been clear. SHG federations attempt to provide financial viability and sustainability to SHG banking. This study explores the merits of federating and finds that SHG federations create economies of scale, reduce promotional and transaction costs, enable provision of value added services and increase empowerment of the poor. Acknowledgements This study was done for the South Asia Region Finance and Private Sector Development Unit of the World Bank. The support of Sophie Sirtaine at the World Bank, who helped design the study and took time to read through the different drafts, is gratefully acknowledged. I thank all the organizations visited and individuals interviewed for their cooperation, and participants of the various fora at which the initial drafts were presented for their valuable comments. I also thank Marilou, Director, South Asia Region Finance and Private Sector Development Unit and other members of the unit for...
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...microcredit on poor people 15 10. Economic condition of Bangladesh 17 11. Microcredit in Bangladesh 19 12. Challenges of microcredit 22 13. Conclusion 23 14. Reference 24 15. Appendices 25 The most important finding in the last two decades in the world of finance did not come from the world of the rich or the relatively well-off. More important than the hedge fund or the liquid-yield option note was the finding that the poor can save, can borrow (can indeed decide on loans to fellow poor), and will certainly repay loans. This is the world of microfinance. The interest in microcredit or microfinance has burgeoned during the last two decades: multilateral lending agencies, bilateral donor agencies, developing and developed country governments, and non-government organizations (NGOs) all support the development of microcredit. A variety of private banking institutions has also joined this group in recent years. As a result, microcredit services have grown rapidly during the last decade, although from an initial low level, and have come to the forefront of development discussions concerning poverty reduction. World over, microcredit has proved to be an important tool to reach the poorest people. It is the social mandate and the holistic development...
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...most readers to understand. (January 2010) Microfinance is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services. The two main mechanisms for the delivery of financial services to such clients are: (1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based models, where several entrepreneurs come together to apply for loans and other services as a group. In some regions, for example Southern Africa , microfinance is used to describe the supply of financial services to low-income employees, which is closer to the retail finance model prevalent in mainstream banking. Community-based savings bank in Cambodia. There are a rich variety of financial institutions which serve micro-entrepreneurs and small businesses. For some, microfinance is a movement whose object is "a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers."[1] Many of those who promote microfinance generally believe that such access will help poor people out of poverty, including participants in the Microcredit Summit Campaign. For others, microfinance is a way to promote economic development, employment and growth through the support of micro-entrepreneurs and small businesses. Microfinance is a broad category of services, which includes microcredit...
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...AND PRIVATE SECTOR DEVELOPMENT UNIT South Asia Region Document of the World Bank TABLE OF CONTENTS EXECUTIVE SUMMARY I. INTRODUCTION 2 India’s Rural Finance Landscape 4 What are the financial needs of the rural poor? 4 Rural finance service providers 5 II. ACCESS TO RURAL FINANCE IN INDIA: THE EVIDENCE 8 Supply Side Indicators of Access to Finance 8 Access to Rural Finance: Evidence from the Demand Side 12 Access to savings/deposit accounts 14 Payments Services – Limited use, high cash economy 15 Access to Credit 15 Access to Insurance 17 The Importance of Informal Finance 17 III. WHAT CONSTRAINS ACCESS TO FINANCE FOR INDIA’S RURAL POOR? 19 Why Banks Are Reluctant To Lend to Rural Clients 19 Lack of credit information. 20 The tyranny of collateral 20 Weak legal framework and enforcement issues. 21 Government policy 21 Why Do Small, Rural Borrowers Find Rural Banks Unattractive? 26 Absence of flexible products and services 26 Transactions costs 26 Collateral 27 IV. RECENT EFFORTS IN INDIA TO IMPROVE RURAL ACCESS TO FINANCE: THE ROLE OF FORMAL—INFORMAL LINKAGES AND NEW PRODUCTS 28 SHG-bank Linkage Approach: Linking Commercial Banks to Grassroots Borrowers 28 How Effective Has SHG Bank Linkage Been in Targeting the Poor? 30 Impact on vulnerability of poor households 32 Some Lessons from SHG Bank Linkage 33 Key concerns: Limited outreach and scale of lending and...
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...A PROJECT REPORT ON FINANCIAL SERVICES OF BANKS Submitted to University of Mumbai in Partial fulfillment Of the requirement of the Degree of B.Com ³BANKING & INSURANCE´ Under guidance of PROF. RUEEN PATEL VPM¶S K.G Joshi College of Arts N.G Bedekar College of Commerce Thane (E) Academic Year: 2010-11 BYJEMINI.J.PATIL ACKNOWLEDGEMENT In completing this project I am deeply conscious of my debt to all those, without whose warm support, enragement & guidance this project was not possible to complete. I am specially greatful to Prof Rueen Patel my guide to this project, She actually gave the life to this project and guidance of my parents & friends this project took shape. They also provided me much needed criticism & encouragement. Jemini Patil DECLARATION I am Jemini J. Patil studying in T.Y.Banking & Insurance hereby declare that I have done a project on ³Financial Services provided by Banks´. As required by the university rules, I state that the work presented in this thesis is original in nature and to the best my knowledge, has not been submitted so far to any other university. Whenever references have been made to the work of others, it is clearly indicated in the sources of information in references. Student (Jemini. J. Patil) Place: Thane Date: October, 2010 EXECUTIVE SUMMARY Banks are the Financial Institution which satisfies the individual & group goals with proper systems of rules, regulations, policies, services, procedures & strategies...
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...Marketing of Banking Services (Case of Prime Bank Ltd. ) CHAPTER 1 Introduction 1.1: BACKGROUND OF THE REPORT Internship program is a pre-requisite for acquiring BBA degree in UIU. Before completion of the program, every student must undergo the internship program or a research work. It is mandatory because classroom discussion alone cannot make a student outstanding in handling the real business scenario. This is an opportunity for a student to learn about the real life situation and how to act accordingly. Another purpose is to know about the rules, regulation and environment of an organization before getting a job or starting a business. Such experience may facilitate a student to have a better job or get success quickly in a business. A report is to be prepared to summarize the findings through observation, and practical work after the internship period. The report titled “Marketing of Banking Services: Case of Prime Bank Limited” is based on the learning from the internship period in Prime Bank Ltd, Shimrail Branch. It contains a concrete idea about the marketing pattern of the bank mainly with the help of observational study from the perspective of 7P’s of services. I will also discuss the other banking activities of the branch. 1.2: ORIGIN OF THE REPORT This report titled “Marketing of Banking Services” is prepared fully on academic basis. It is a mandatory requirement as a part of internship for BBA program completion under the school of business of UIU. This topic...
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...RURAL BANKING IN UGANDA: IT’S IMPACT ON RURAL FARMERS (A CASE OF UNYAMA) BY HENRY EGYEYU Reg N0: 07/U/456/BAK/PS MAY, 2012 DECLARATION I Henry Egyeyu, hereby declare that this research report is my original work and to the best of my knowledge, has never been published and submitted for the award of any degree in any University or Institution before. Sign ……………………………………………….. Date ……………………………………………... Henry Egyeyu Reg No: 07/U/456/BAK/PS APPROVAL This research papers under the topic “Rural Banking in Uganda: It’s Impact on Rural Farmers” Has been under my supervision and is now ready for submission with my approval. Sign: ……………………………………… Date: …………………………………. Mr. Ambrose Eger Supervisor DEDICATION To the memory of my late grandfather Daniel Egyeyu Whose love & enthusiasm for academia first kindled mine? ACKNOWLEDGEMENT Achievement often sets off a chain reaction. Those who earn awards in various disciplines in their careers inspire us in turn to strive and excel with hard work and deeds of succession. That has been true of the process of writing this dissertation I am grateful for the motivation of Geoffrey Epolu at guluuniversity@AR.com whose question, “Do you want to graduate?” first got me started. Paul Onyango Delewa, lecturer at Gulu University, read the first script and encouraged me to go on with the dissertation. Ambrose Eger as he had always done before, made sure that what I researched communicated my...
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...The Effect of Microfinance Institutions in Promoting Savings CHAPTER ONE INTRODUCTION 1. Overview The chapter will constitute Background of the study, statement of the problem, objectives of the study, research questions, significance of the study, scope of the study, limitations of the study and conceptual frame-work of the study. 2. Background to the study The micro finance business embraced today arose in Bangladesh in 1976 with the founding of the Grameen Bank. It became popular in the 1980s s a response to doubts and research findings about a state delivery of subsidized credit to the poor farmers. According to Ledgerwood (2001), prior the 1980s government agencies were the predominant avenue for providing productive credit to those with no previous access to credit facilities. Their services had and still have limited access, because they need collateral as a requirement for getting a loan and the transaction costs are so high. Governments and international donors assumed that the poor required cheap credit and saw this as a way of promoting agricultural production by small landholders. Since the 1980s the fields of Micro finance (MF) has grown substantially. Donors actively support and encourage micro finance activities focusing on micro finance institutions (MFIs) that are committed to achieving substantial outreach and financial sustainability. In Uganda, the health of the financial sector has been impaired by political and social turmoil. It...
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...Microfinance From Wikipedia, the free encyclopedia Jump to: navigation, search This article may be too technical for most readers to understand. Please help improve this article to make it understandable to non-experts, without removing the technical details. The talk page may contain suggestions. (January 2010) Community-based savings bank in Cambodia. There are a rich variety of financial institutions which serve the poor. Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services. More broadly, it is a movement whose object is "a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers."[1] Those who promote microfinance generally believe that such access will help poor people out of poverty. Microfinance is a broad category of services, which includes microcredit. Microcredit is provision of credit services to poor clients. Although microcredit is one of the aspects of microfinance, conflation of the two terms is endemic in public discourse. Critics often attack microcredit while referring to it indiscriminately as either 'microcredit' or 'microfinance'. Due to the broad range of microfinance services, it is difficult to assess impact, and very few...
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... | |» 1.03. Methodology | | |» 1.04. Scope of the Report | | |» 1.05. Limitations of the Study | | |∆∆Chapter- 2 (Prime Bank at a Glance) | | |» 2.01. Background | | |» 2.02. Objective of the bank | | |» 2.03. Corporate information | | |» 2.04. Departments of Prime Bank | | |» 2.05. Branch Network...
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