Grameen Bank Credit Discipline for Proper Microfinancing System: Empirical Evidences from Bangladesh and Malaysia
A.H.M. Zehadul Karim
(International Islamic University Malaysia)
Paper short abstract:
It describes the Grameen Bank credit discipline for proper microfinancing system.
Paper long abstract:
Grameen Bank has been identified as an important institutional model for making credit better useful for the poor around the world.. The program has now been cloned to as many as 60 developing nations of the world, as a principal strategy to deal with perfect management of poverty eradication among the rural poor. Grameen Bank has formulated its own credit system by analyzing them critically to make them fundamentally suitable for proper micro-financing. This procedural credit discipline is thus required to support the total process of disbursement and repayment of loans strategically designed to benefit the poor. It is therefore, ostensibly anticipated that many of such microfinaning programs outside Bangladesh are facing problems due to their ignorance about the procedures and techniques which do not exist in them in strict sense of the term. Based on such assumptions, this paper first of all, is designed provide a brief conceptualization about the credit discipline system of the Grameen Bank which has had evolved through a lengthy process of learning and experiences. With such theoretical background, the paper will provide empirical data from two Grameen replications in Bangladesh and Malaysia to show its effectivity at the implementation level. In addition to that, the paper will then cite examples from other Asian countries who have adopted Grameen model, and to critically find their strength and weakness of the programs in their respective institutional microfinancing system.
Micro-financing and rural poverty reduction