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Key Issues for Profitable Commercial Bank Engagement in Microfinance


Gives an overview of the current involvement of commercial banks in microfinance in the Asia-Pacific region. Outlines three possible profitable approaches for banks to expand this involvement: * commercial banks can lend to microfinance institutions which will then on-lend to the poor, * banks can lend to self-help groups of the rural poor, * banks can lend to microentrepreneurs directly. Benefits and caveats of each approach are given, along with examples. Tables detailing costs to banks in dealing with microfinance and microenterpreneurs in various regions are also included.

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