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The microfinance revolution: an overview

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  • Craig P. Aubuchon
  • Rajdeep Sengupta

Abstract

The Nobel Prize committee awarded the 2006 Nobel Peace Prize to Muhammad Yunus and the Grameen Bank \\"for their efforts to create economic and social development from below.\\" The microfinance revolution has come a long way since Yunus first provided financing to the poor in Bangladesh. The committee has recognized microfinance as \\"an important liberating force\\" and an \\"ever more important instrument in the struggle against poverty.\\" Although several authors have provided comprehensive surveys of microfinance, our aim is somewhat more modest: This article is intended as a non-technical overview on the growth and development of microcredit and microfinance.

Suggested Citation

  • Craig P. Aubuchon & Rajdeep Sengupta, 2008. "The microfinance revolution: an overview," Review, Federal Reserve Bank of St. Louis, vol. 90(Jan), pages 9-30.
  • Handle: RePEc:fip:fedlrv:y:2008:i:jan:p:9-30:n:v.90no.1
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    Cited by:

    1. Jacinta C. Nwachukwu & Aqsa Aziz & Uchenna Tony‐Okeke & Simplice A. Asongu, 2018. "The determinants of interest rates in microfinance: Age, scale and organizational charter," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 135-159, August.
    2. Minkyung Kim & K. Sudhir & Kosuke Uetake & Rodrigo Canales, 2016. "Multidimensional Sales Incentives in CRM Settings: Customer Adverse Selection and Moral Hazard," Cowles Foundation Discussion Papers 2085, Cowles Foundation for Research in Economics, Yale University.
    3. Janda, Karel & Zetek, Pavel, 2014. "Mikrofinanční Revoluce: Aktuální Kontroverze A Výzvy [Microfinance Revolution: Recent Controversies And Challenges]," MPRA Paper 54098, University Library of Munich, Germany.
    4. Pawel Galinski, 2013. "Activity Of Microfinance Institutions In The Period Of The Global Financial Crisis," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(1), pages 91-105, March.
    5. Heller, Lauren R. & Badding, Kayla D., 2012. "For compassion or money? The factors influencing the funding of micro loans," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 831-835.
    6. Jorge Mota & António Carrizo Moreira & Cristóvão Brandão, 2018. "Determinants of microcredit repayment in Portugal: analysis of borrowers, loans and business projects," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 17(3), pages 141-171, November.
    7. Viresh Amin, 2014. "The Role of Trust-Control Mechanisms in Operations Processes: Mitigating Mission Drift in a Microfinance Institution in Gujarat, India," Management Working Papers 7, Birkbeck Department of Management, revised Jun 2014.
    8. Sim, Jaehun & Prabhu, Vittaldas, 2017. "A microcredit contract model with a Black Scholes model under default risk," International Journal of Production Economics, Elsevier, vol. 193(C), pages 294-305.
    9. Alberto Lanzavecchia, 2012. "Is microcredit targeted to poor people? Evidences from a Cambodian microfinance institution," "Marco Fanno" Working Papers 0149, Dipartimento di Scienze Economiche "Marco Fanno".
    10. Fatih Ozturk, 2014. "A Comparative Social Enterprise Analysis: Motives, Processes and Barriers (Analiza porownawcza przedsiebiorstw spolecznych – motywy, procesy i bariery)," Research Reports, University of Warsaw, Faculty of Management, vol. 1(17), pages 86-97.
    11. Minkyung Kim & K. Sudhir & Kosuke Uetake, 2019. "A Structural Model of a Multitasking Salesforce: Multidimensional Incentives and Plan Design," Cowles Foundation Discussion Papers 2199, Cowles Foundation for Research in Economics, Yale University.
    12. Abdul Karim, Zulkefly, 2009. "Microfinance and Mechanism Design: The Role of Joint Liability and Cross-Reporting," MPRA Paper 23934, University Library of Munich, Germany, revised 12 Jan 2010.
    13. Protap Kumar Ghosh & Sutap Kumar Ghosh, 2017. "Gender Disparity in Functionality and Consequence of Microfinance: Does it Function Currently?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(2), pages 164-174, February.
    14. Gustavo Barboza & Sandra Trejos, 2009. "Micro Credit in Chiapas, México: Poverty Reduction Through Group Lending," Journal of Business Ethics, Springer, vol. 88(2), pages 283-299, September.
    15. Bashir, Rabia & Bajwa, Sami & Mamoon, Dawood, 2017. "Channeling Local Culture into Sustainable Microfinance Solutions by Akhuwat: From Borrowers to Donors," MPRA Paper 81591, University Library of Munich, Germany.
    16. Islam, Jamal & Mohajan, Haradhan & Datta, Rajib, 2012. "Aspects of microfinance system of Grameen Bank of Bangladesh," MPRA Paper 50691, University Library of Munich, Germany, revised 27 Mar 2012.
    17. Janda, Karel & Zetek, Pavel, 2014. "Survey of Microfinance Controversies and Challenges," MPRA Paper 56657, University Library of Munich, Germany.
    18. Berhane Tesfay, G. & Gardebroek, Cornelis, 2008. "Joint-liability borrowing decisions under risk: Empirical evidence from rural microfinance in Ethiopia," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44202, European Association of Agricultural Economists.
    19. Md. Abul Kalam Azad & Abdul Kadar Muhammad Masum & Susila Munisamy & Dilruba Fatima Sharmin, 2016. "Efficiency analysis of major microfinance institutions in Bangladesh: a Malmquist index approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(4), pages 1525-1537, July.
    20. James ALLEMAN & Paul RAPPOPORT, 2010. "Mobile Money: Implications for Emerging Markets," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(79), pages 15-28, 3rd quart.
    21. Aruna Chandra & Thankom Arun, 2011. "United States Microfinance: Regulating to Promote Growth?," NFI Working Papers 2011-WP-28, Indiana State University, Scott College of Business, Networks Financial Institute.

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    Credit; Bank loans; Poverty;
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