|Challenges for Second Generation Microfinance
Regulation, Supervision and Resource Mobilization
edited by Iffath Sharif and Geoffrey Wood
ISBN 984 05 1536 5 2001 444p 215x136mm HB Tk.525.00 US$27.00
Two decades of development practice have highlighted the importance of financial services in the fight against poverty. Accordingly microfinance organizations have scaled up their operations in many developing countries, with Bangladesh being a notable example. However, the traditional form of support for microfinance via donor grants and concessional loans is not sustainable. Microfinance organizations are therefore, having to raise additional funds through private means such as deposit mobilization and commercial loans which in turn poses numerous "second generation" issues and challenges for the sector.
Using Bangladesh as its context, this book presents some of these issues and concerns, as well as some general recommendations to minimize and manage the risks involved with "second generation" microfinance. The book focuses on resource mobilization and the legal and regulatory framework for microfinance supervision. Case studies are also presented of microfinance organizations in Bangladesh engaging in sustainable microfinance. With its large scale successful operations, the policy implications from Bangladesh microfinance organizations should be of interest to microfinance practitioners and policy makers in Bangladesh and beyond.
Iffath Sharif was until recently a member of the Financial Sector Research Group at The World Bank where she worked on issues of microfinance and banking regulation and supervision. Prior to her work with the World Bank, she was with the Bangladesh Non-Government Organization, Proshika, working on poverty and microfinance issues. Ms. Sharif co-edited Who Needs Credit? Poverty and Finance in Bangladesh with Geoffrey Wood, published by University Press Limited and Zed Books in 1998. Iffath Sharif is currently researching credit markets in Sri Lanka and has degrees in Economics and Public Policy from Middlebury College and Princeton University.
Geoffrey D. Wood is Professor of International Development and Director of the Institute for International Policy Analysis (IFIPA) at the University of Bath, UK. He has three decades of village level research experience in South Asia, especially in Bangladesh, North India, and currently in Northern Pakistan. His publications include, Bangladesh: Whose Ideas, Whose Interest; Who Needs Credit? Poverty and Finance in Bangladesh (co-author). He is currently working on theories of adverse incorporation as part of a large research programme at Bath on global social policy.