Was this content written or created while at IBA?
No
Document Type
Conference Paper
Publication Date
11-12-2006
Conference Name
Panel presentation at Global Microcredit Summit
Conference Location
Halifax, Canada
Conference Dates
November 12-16, 2006
Series
Faculty Research - Book Chapters and Conference Papers
First Page
1
Last Page
5
Keywords
Finance, Microfinance institutions
Abstract / Description
In assessing the pros and cons of the issue of transforming NGOs into regulated Microfinance Institutions (MFIs) we have to remind ourselves as to what the ultimate objective of this exercise is? The objective is that such a transformation should result in accelerating outreach of microfinance to the poor segments of the population on a sustained basis. We must concede that it is the NGOs who have demonstrated through their work of last 30 years or so that the poor can be lent money without collateral and that the poor are a better risk as compared to the average borrower of the organized financial sector. These attributes of the NGOs that have made microfinance delivery to the poor a workable proposition have to be retained in the regulated MFI otherwise the MFIs will tend to converge toward the mainstream financial system characterized by collaterals and securities and the microcredit movement will lose its steam.
Recommended Citation
Husain, I. (2006). Transforming non-governmental organizations into regulated microfinance institutions at Global Microcredit Summit at Halifax, Canada., 1-5. Retrieved from https://ir.iba.edu.pk/faculty-research-series/192
