of financial products to its clients, from 1997 ASA launched open-access savings accounts, a contractual savings accounts and a term deposit account. ASA soon found that its overall savings balances increased,
but no more than would have been expected if only its original compulsory savings account had remained. Although deposits increased rapidly, so did withdrawals, leaving ASA without the expected additional
capital, and with the additional costs of extra transactions. Capital could be mobilized more cheaply elsewhere. In spite of the advantages to clients (particularly women) of being able to save small amounts
secretly, ASA decided in the interests of institutional sustainability to drop the new accounts. This article goes on to compare a situation where savings products have taken off: BRI, Indonesia. It is
suggested that most of ASA's clients have little to spare once they have re-paid their loans to make any additional savings. The near saturation of the market for microcredit in Bangladesh means that many
poor people are becoming over-indebted, and this is likely to mean higher levels of defaults for all MFIs in future.
New Partnerships for Innovation in Microfinance
Information Technology Innovations That Extend Rural Microfinance
Frederick, Laura I
2009https://doi.org/10.1007/978-3-540-76641-4_10 [Citations: 2]
The demand for flexible microfinance products: lessons from Bangladesh
Meyer, Richard L.
Journal of International Development, Vol. 14 (2002), Iss. 3 P.351https://doi.org/10.1002/jid.884 [Citations: 56]
Microfinance and Poverty Reduction: Is there a Trade-Off? A Case Study from Rural Bangladesh
Shekh, M. Nurul I.
Forum for Development Studies, Vol. 33 (2006), Iss. 2 P.367https://doi.org/10.1080/08039410.2006.9666355 [Citations: 3]
- Development impact bonds: learning from the Asháninka cocoa and coffee case in Peru
- Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa
- Value chain development for rural poverty reduction: A reality check and a warning
- What is cocoa sustainability? Mapping stakeholders’ socio-economic, environmental, and commercial constellations of priorities
- Impact assessment of commodity standards: towards inclusive value chains