A case study of microfinance institutions in China and Bangladesh

• Main Authors: Cai, Yuwei, Tan, Jing Lun
• Other Authors: Tan Kok Hui
• Format: Final Year Project
• Language: English
• Published: 2010
• Subjects: DRNTU::Business::Finance::Financial institutions
• Online Access: http://hdl.handle.net/10356/35453
• Institution: Nanyang Technological University

It is known that the majority of the rural people in the developing world are subject to severe poverty, inequality and unemployment. Over the years, there have been a few institutional approaches which were experimented to eliminate poverty from these societies, and according to many analysts, microfinance has been considerably successful in achieving this goal of alleviating poverty. The microfinance industry has attained a global outreach, with more than 92 million customers reported in the developing countries. Currently, it is common to find a Poverty Reduction Strategy which includes microfinance as an element of the national development. In the following report, in the first section, a general introduction of microfinance industry and its development over the years will be presented. In the second section, it delineates a basic outline of the microfinance industry in two developing countries, Bangladesh and China. This is done through the examination of the general structure, organizations, government regulations and methodologies implemented in their respective microfinance industry. Finally, in the last section, a detailed analysis is done to illustrate the differences and effectiveness of the microfinance industry in these two countries.