Impact of global financial crunch on financially innovative microfinance institutions in South Asia

The wave of global financial crises(2008-2009)caused a surge in the capital flows of developed countries particularly,between developed and developing countries.The crunch hit all financial sectors with unanticipated severity.The study evaluates the role of a country’s political practices in moderating the impact of global financial crunch on microfinance performance.Using the fixed effect panel regression method on the dataset comprising of 95 MFIs operating in South Asia from 2003 to 2012,we determine that microfinance operational capability shares a positive relationship with the institutional attributes of a country and our output reveals that impact of country’s political practices is pervasive on the financial output of MFIs,liable to different levels of implementation.The findings further reveals that MFIs situated in countries having vigorous political practices are less severely affected by the economic crunch.

Microfinance Structure of Thailand

This paper was devoted to analyzing the structure of microfinance in Thailand. The theory of industrial organization （IO） was applied as a guideline to measure the degree of monopoly power in microfinance structure. The objective-of the study was investigation on Thai microfinance institution marketing structure by using Concentration Ratio （CR） and Herfindahl Hirschman Index （HHI）. The data of the study focus on the outstanding loans market share of microfinance institutions （MFIs）. The market share of the outstanding loans of MFIs from the largest to the smallest is as follows： Bank for Agriculture and Agricultural Cooperatives （BAAC）, Village Fund Cooperatives, Government Saving Bank （GSB）, Pawnshop, Self Help group： Saving Group, Commercial Bank, Self Help Group： Sudja Group and Isalamic Bank （IB）, respectively. It stated that CR by outstanding loans is as follows： Cr 1, 59.35%; Cr 3, 81.11%; Cr 6, 92.14%; and Cr 9, 94.37%. At the same time HHI is 0.38. Additionally, BAAC remains the majority MFIs even though there are the other MFIs available in the microfinance system. The main role of providing the microfinance services mostly derived from BAAC.

Economic Empowerment of Rural Women:Case Study of Microfinance Institution(MFIs)in Tangerang,Indonesia

The aim of this research is to extract information from married female clients who utilize financing,empowering,and other facilities provided by Microfinance Institutions(MFIs).Quantitative descriptive approach is used in order to describe MFIs.Specifically,the difference between MFIs in each area will be overviewed by using statistical instruments of testing for a difference between means and independent F-test.On the other hand,descriptive qualitative approach is used to review the social interactions of female clients.The results of this research have uncovered some facts.First,however,Difference-Between-Two-Means Test has revealed that no significant difference is found.This shows that the empowering aspect that has been done by MFIs conforms with the standard.Second,the fact that no significant difference is found in the empowering process has been backed by data that reveals relatively small loans scale,similarity in business models,unvaried necessity,relatively small expenditure and living cost,low access to education,and good accessibility to MFIs.Third,business models that are desirable by female clients have these characteristics:only requiring a minimum amount of capital;durable;fast-moving;focusing more on costumers;adaptable;contributing to the socieW's economy;flexible;having a set amount of freedom.

Economic Analysis of Microfinance： Evidence from China

China＇s evolutionary reform brought China economy enormous progress, which also subsided the poverty phenomenon. But the present anti-poverty task is still very arduous for China today. Peasant household＇s microfinance is a kind of important tool which contributes to the poverty alleviation. The sustainable development of microfinance has become a serous problem at present. This text analyses the sustainable development of microfinance through setting up the income model of microfinance, then puts forward the way to solve.

Microcredit as a Strategy for Poverty Reduction： A Case Study of the Sudan

Sudan is among those developing countries characterized by high incidence of poverty in spite of its prodigious resource endowments. Sudan government has continued to introduce programmes aiming at alleviation of poverty which were generally characterized by a lack of effectiveness. The traditional approach towards poverty reduction centered on national development programmes designed to enhance economic growth and improve standards of living. In addition, the Islamic institution of Zakat was utilized to help poor families start income-generating projects. However, recently, a more ambitious poverty-focused microcredit programme was laid forth. Thus, billions of dollars were earmarked for microcredit to help the poor obtain investible resources which can be directed towards starting income-generating projects. This paper argues that today, there is no shortage of funds earmarked for microfinance in Sudan. But the prevailing institutional inadequacies would not allow such substantial outlays to have much impact on poverty reduction. This paper reviews the history of microcredit and microfinance in the country, highlights the roles of different institutions in provision of microcredit, attempts to figure out its possible policy outputs, and finally makes some suggestions to overcome the evident shortcomings.

A Study on Empowerment of Rural Women Through Microcredit Facilities in Sri Lanka

This study seeks to examine the impact of micro credit facilities on women empowerment in the context of the great importance being given to the entrepreneurs. Access to credit can help women by enabling them to start and expand small businesses, often accompanied by market access. This study has the research problem--whether the micro credit facilitates in empowering women entrepreneurs in the rural areas of Sri Lanka. Therefore, the study has the primary objective to identify the impact of micro credit on empowerment and the sub to assess the relationship among them. The study adopts a causal survey research design through which 337 members of microfinance institutions （MFIs） in the study area of Northern Province in Sri Lanka were selected using stratified random sampling and data collected from them by using a structured questionnaire. Correlation and regression analysis has been used to find out the impact of micro credit facilities on empowerment of women entrepreneurs in the rural areas of Sri Lanka. Linear multiple regression analysis was used to determine the micro credit facilities that affect women empowerment by using SPSS. The model summary indicates that 10.9% of the variation in the women empowerment can be explained for the micro credit facilities and remaining 89.1% influencing by other factors, such as education, experience, income, etc. The study concluded that micro credit facilities alone do not support the entrepreneurs to enhance them and it makes the policy recommendations to guide development of micro credit facilities that are beneficial to the clients and other stakeholders of the MFI institutions.

CONSTRUCTING AN ACCESS SYSTEM FOR UNBANKED IN MYANMAR TO A MICROFINANCE INSTITUTION

In Myanmar, the formal financial institution does not provide uncollateralized credits. The rural unbanked under the poverty line is depending on the informal money-lenders with high interest rate. Private Agency Collaboration Together is only one microfinance institution providing the credits without collateral and with low interest rate to the unbanked in Myanmar. Half of the unbanked are unable to borrow the loans from the microfinance institution because of the weakness of the information contribution and the strict legal policies of the microfinance institution. Therefore, the objective of this study is to construct a system to improve the relationship between the microfinance institution and the unbanked by reducing the obstacles in the current system ofmicrofinance institution. The legal policy is studied from the vision of the local unbanked as the originality of this research and the /-System methodology is applied to accomplish the research. The current system comprises the information contribution, loans and legal policies. The current system is only one relationship between the microfinance institution and unbanked. When the ten obstacles occurred in the current system, the unbanked cannot approach to the microfinance institution. An access system including four sub-systems is developed depending on the collected ideas to solve these obstacles and intend to improve the relationship between microfinance institution and the unbanked.