StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Domestic finance and microfinance - Assignment Example

Cite this document
Summary
Poor people are lucky with the emergence of MFIs in the market as their requirements are simple as compared to those of their counterparts in the banking industry…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
Domestic finance and microfinance
Read Text Preview

Extract of sample "Domestic finance and microfinance"

Domestic finance and microfinance Why can MFIs provide banking services to people that were previously considered unbankable? Looking at the banking history, services were provided to people were able to meet the banking requirements. Poor people are lucky with the emergence of MFIs in the market as their requirements are simple as compared to those of their counterparts in the banking industry. Through their minimum savings opportunities, even the low-income earners can save in their respective groups (Ledgerwood &White, 2006).

The MFIs have better lending terms as compared to those used by banks. Their requirements are simple elements as compared to those that focuses on large sums. Their role in the market makes a big difference between the two lending institutions. It’s also vital noting that the amount they finance differs in terms of their amount and their requirement. The motive of MFIs was to help the low-income people access banking as opposed to the commercial banks that have different target group (Ledgerwood &White, 2006).

Lastly, MFIs can provide loans to low-income earners on the basis formation groups. As compared to the commercial banks, MFIs are effective in working with the low-income earners. Governments also support their operations in order to boost their economy.What role can an expanding MFI sector play in the economic development of a developing country? Also explain what role it cannot play, The MFIs play crucial roles in the developing of a countrys economy. They help the members of such countries in setting up their business by financing them.

They also help them people in understanding the need to do savings through their training forums. Through their operations, they help in increasing supply and circulation of money. Moreover, in terms of management they help them to know what they are required to do in managing what they have and use those assets to generate income (Ledgerwood &White, 2006). However, as the MFIs operates, they are not allowed to spread misleading information as a way of persuading their target customers. In this case, ethical standards regulating banking sector remains a must to them too and never bleach them.

Work citedLedgerwood, J. and White, V. (2006). Transforming microfinance institutions providing full financial services to the poor. Washington, DC Stockholm: World Bank MicroFinance Network Sida.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Domestic finance and microfinance Assignment Example | Topics and Well Written Essays - 250 words”, n.d.)
Domestic finance and microfinance Assignment Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/macro-microeconomics/1687048-domestic-finance-and-microfinance
(Domestic Finance and Microfinance Assignment Example | Topics and Well Written Essays - 250 Words)
Domestic Finance and Microfinance Assignment Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/macro-microeconomics/1687048-domestic-finance-and-microfinance.
“Domestic Finance and Microfinance Assignment Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/macro-microeconomics/1687048-domestic-finance-and-microfinance.
  • Cited: 0 times

CHECK THESE SAMPLES OF Domestic finance and microfinance

Businesses Contributing to Living Conditions in an Asian Community

She wasn't the only one; there were a large number of individuals living in rural Bangladesh who had managed to bring significant improvements in their living condition with the aid of the microfinance program that was implemented by Grameen Bank.... Can you find examples of businesses contributing to living conditions in an Asian community?...
5 Pages (1250 words) Essay

Graduate Diploma in Finance and Banking

My quest in accomplishing this goal will be hugely aided by a deeper knowledge and understanding of the financial system together with the role of financial intermediaries like banks, saving and loan cooperatives, and microfinance institutions.... I will be sharing my knowledge in managing the management of a financial institution derived from my practical experience in CFI SA especially on the problems faced by a microfinance organization in expansion such as the incapacity of obtaining financing from banks, limited capital, market access, administration, legality and collateral....
2 Pages (500 words) Admission/Application Essay

3 Businesses in UAE

This part of text looks into the business functioning in the United Arab Emirates.... t tries to identify the strengths and weaknesses of three randomly selected companies to a way of generalizing the business environment of the UAE.... … This part of text looks into the business functioning in the United Arab Emirates (UAE)....
12 Pages (3000 words) Essay

The Role of Microfinance Companies

The primary purpose for review of the literature is to determine the impact of the intra households' relations in African societies as the result of microfinance intervention.... It further refers to the changing role of the men in that society.... For analysis of this project, one… As per the demand of the topic the reviews of literature should not stick to the micro credit policy....
6 Pages (1500 words) Essay

Business and Political Opportunity of Ethiopia

The author of this paper "Business and Political Opportunity of Ethiopia" presents the business strategies of the country and the influence of the politics on the economic sector.... Financial resources are also the question under consideration in this paper.... hellip; Ethiopia is one of the quick-growing economies in the world with impressive GDP growth for the past several years, ranging between 6% and 12% according to World Bank and IMF reports (Briggs et al 66)....
7 Pages (1750 words) Coursework

Importance of the Financial Sector

The author of the paper tells that Bangladesh could be cited as a commendable example where microfinance operations initiated by the domestic financial institutions under the patronage of Nobel laureate Muhammad Yunus, facilitated the advancement of loans at subsidized rates in the rural economy.... microfinance activities gained high popularity among the Asian economies and the concept was readily adopted by many neighboring nations to deal with poverty.... In fact, the domestic financial sector is one of the most suitable of all mediums that the national government utilizes to implement its growth stimulating policies....
10 Pages (2500 words) Research Paper

How Micro Credit Empowerment Has Led to Domestic Violence in Intra Households

The first challenge includes finding publications by independent researchers or organizations not involved in microfinance initiatives or sponsored by organizations.... million of the world's poorest women had access to financial services through microfinance institutions; banks; NGOs; and other nonbank financial institutions.... million of the world's poorest people served by microfinance institutions.... Aid donors; governments; scholars; and other development experts have focussed on microfinance as a strategy capable of reaching women and involving them in the development process (Cheston and Kuhn, 2005)....
5 Pages (1250 words) Research Proposal

Reflective Diary From Four Seminars

hellip; microfinance as an option for small-scale entrepreneurs especially farmers was hailed as major advancement under rural finance.... nbsp; But then the bubble burst happened with the microfinance crisis of Andhra Pradesh, India.... This essay "Reflective Diary From Four Seminars" focuses on the author's reflection on attending the four seminars on development....
8 Pages (2000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us