Building banking from below in Bangladesh
Author: Jackelen, Henry
Source: Small Enterprise Development, Volume 10, Number 3, 1 September 1999 , pp. 29-37(9)
Publisher: Practical Action Publishing
Abstract:In Bangladesh, a poorly performing formal financial sector runs parallel to a burgeoning and innovative microcredit industry run by NGOs. The success of the group-based microcredit formula originating with Grameen Bank is well-known; the expansion of Bangladesh's microcredit industry is also partly the result of the supervisory system created by the apex organization, PKSF. As concern increases about how to cater for the financial needs of the poorest, who are unable to benefit from microcredit, attention is focused on savings accounts to provide poor people with security. This article proposes the establishment of a savings guarantee foundation in Bangladesh which would have the function of regulating savings accounts with NGOs, guaranteeing people's savings with certified NGOs, and researching appropriate savings and insurance products for poor people.
Document Type: Research article
Publication date: 1999-09-01