Sustainability Issues Of Interest-Free Micro-Finance Institutions In Rural Development And Poverty Alleviation. The Bangladesh Perspective
AbstractThe main focus of this research is to critically evaluate the sustainability issues of Interest-free Micro–Finance Institutions (MFIs) in general and a recently developed micro finance model - Rural Development Scheme (RDS) of Islamic Bank Bangladesh Limited (IBBL) in particular. Recently, in micro finance literature, the term „sustainability or self-sustainability” has been discussed and analyzed widely among the practitioners, researchers and policy makers as an important development indicator of both MFIs and its clients. It is well known that only efficient institutions can low the high cost of servicing small and irregular incomes on a sustainable basis. These lower costs can in turn be passed on to the poor/hardcore poor in the form of low finance charges, which leads to contribute their smooth income generating activities. In this context, the present study is an endeavor by the researcher to examine mainly the institutional, financial and economical sustainability of the above model by using various indicators. The empirical analysis of the study reveals that RDS of IBBL has been treated as a sustainable MFI in the rural development and poverty alleviation of Bangladesh with a short span of time of its establishment. Finally, the study also suggests some policy guidelines for the smooth functioning and development of the afreosaid interest –free MFI in any region like Bangladesh.
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Bibliographic InfoArticle provided by Research Centre in Public Administration and Public Services, Bucharest, Romania in its journal Theoretical and Empirical Researches in Urban Management.
Volume (Year): 4 (2009)
Issue (Month): 2(11) (May)
Interest-free MFI; Financial & Economical Sustainability and Outreach.;
Find related papers by JEL classification:
- R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December.
- Mark Schreiner, 2002. "Aspects of outreach: a framework for discussion of the social benefits of microfinance," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 591-603.
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