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Regulating microfinance NGOs in Bangladesh
Although there are over 1000 microfinance NGOs in Bangladesh, most of the volume of loans comes from a few large NGOs. At present NGOs are not permitted by law to take deposits from the public or even toon-lend the savings of loan clients, even though this is not usually enforced. The author argues that a three-tier system should be established to regulate microfinance activities: in the first tier the
majority of NGOs should be permitted to accept savings from loan clients; in the second, the larger NGOs should be permitted to offer deposit accounts to the general public; and in the third, normal MFIs
should be set up with private investment. The first tier should be supervised by a coalition of three second-tier institutions, PKSF, CDF and ADAB; the two further tiers should be supervised by the central
bank.
Although there are over 1000 microfinance NGOs in Bangladesh, most of the volume of loans comes from a few large NGOs. At present NGOs are not permitted by law to take deposits from the public or even to
on-lend the savings of loan clients, even though this is not usually enforced. The author argues that a three-tier system should be established to regulate microfinance activities: in the first tier the
majority of NGOs should be permitted to accept savings from loan clients; in the second, the larger NGOs should be permitted to offer deposit accounts to the general public; and in the third, normal MFIs
should be set up with private investment. The first tier should be supervised by a coalition of three second-tier institutions, PKSF, CDF and ADAB; the two further tiers should be supervised by the central
bank.
on-lend the savings of loan clients, even though this is not usually enforced. The author argues that a three-tier system should be established to regulate microfinance activities: in the first tier the
majority of NGOs should be permitted to accept savings from loan clients; in the second, the larger NGOs should be permitted to offer deposit accounts to the general public; and in the third, normal MFIs
should be set up with private investment. The first tier should be supervised by a coalition of three second-tier institutions, PKSF, CDF and ADAB; the two further tiers should be supervised by the central
bank.
Investigating a best practice model of microfinance for poverty alleviation
Toindepi, Joseph
International Journal of Social Economics, Vol. 43 (2016), Iss. 4 P.346
https://doi.org/10.1108/IJSE-05-2014-0091 [Citations: 8]Tabs navigation
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