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Enlightenments Drawn from the Experience of the Development of Microfinance Business in Bangladesh and Relevant Policy Options(No.183, 2016)


By Sun Fei, Research Team on “The Development of Microfinance Institutions in Bengal”, Research Institute of Finance, DRC

Research Report No.183, 2016 (Total 5066) 2016-12-20

Abstract: In recent years, the experience of the development of micro-finance in Bangladesh has been borrowed by many developing countries, showing practical effects in alleviating poverty and promoting the sustainable development of micro-finance institutions. Although the development stage, its basic national conditions, policy environment and the special requirements of creditors in Bangladesh are all quite different from those of China, we can still draw on some enlightenments from its experience relating to its selection of customers, management structure, and the construction of loan culture. In realizing the goals of alleviating poverty and promoting the sustainable development of micro-finance institutions, we need to, in light of China’s conditions, enhance the self-construction of micro-finance institutions, and play the guiding role of the government through implementing supporting measures. On one hand, the government needs to provide policy support in terms of fund sources, the construction of credit information system and risk-sharing mechanism. On the other hand, it needs to flesh out relevant laws and regulations and implement differentiated supervision so as to provide systematic guarantee for the sound development of micro-finance business.

Key words: micro-finance, experience of Bangladesh, poverty