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October 2010 Issue
China: Comparing NGO-Type MFIs in Shaanxi, China, with Grameen Bank, Bangladesh
M. Wakilur Rahman and Jianchao Luo
Abstract
This paper examines the sustainability of nongovernmental organisation-type microfinance institutions in Shaanxi province, China in comparison with Grameen Bank, Bangladesh. The findings show that despite geographical restrictions, the selected microfinance service providers have successfully expanded their services to isolated mountainous regions where formal financial institutions were non-existent earlier. They have built a strong financial and informational network with Plan China (country office of Plan International), China Association of Microfinance and women federation (Shaanxi province). However, the lack of funds, limited service provisions and restrictive policy environment shackles the industry from further expansion; necessitating urgent remedial steps for resolving existing barriers and allowing these institutes to participate in China's growth.The undertaking of similar research in other provinces is suggested for a better understanding of the Chinese microfinance sector.
Sri Lanka: Community-Based Organisations - Achieving a Double Bottom Line?
Imran Nafeer & R.M. Nadeera Ranabahu, IDEAS Consultancy (Pvt) Limited
Abstract
The purpose of this paper is to analyse the operational sustainability, and financial inclusiveness of the community based organisation model of microfinance institution in Sri Lanka. The findings indicate that although the spread and depth of outreach is limited within the studied CBOs, financial performance is promising. The CBOs are able to extend their services to the lower end of the market, but not to the lowest segment. Incorporation of this market segment during the CBO mobilisation and formation stage thus becomes vital. There’s also a hint of ‘trade-off’ - where either profit or social good often takes the backseat.
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