History of microfinance in Bangladesh: A life cycle theory approach
Document Type
Article
Publication Date
1-1-2019
Abstract
This study aims to conceptualise and document the historical evolution of microfinance in Bangladesh using the life cycle theory (LCT). Based on the LCT nomenclature, the microfinance sector in Bangladesh shows characteristics broadly consistent with the saturation phase (2006–2015)–which potentially has adverse impacts on both microfinance clients and institutions. The maturity phase (1996–2005) of microfinance has corresponded with competition and several innovations (financial and non-financial). However, the saturation phase sees increasing presence of uncoordinated microfinance institutions and expansion of multiple borrowing, as well as commercialisation and ‘mission drift’, which constitute important challenges for the regulatory authority and management of microfinance institutions. © 2017, © 2017 Informa UK Limited, trading as Taylor & Francis Group.
Keywords
Microcredit and microfinance, microfinance institutions, multiple borrowing, life cycle theory, Bangladesh
Divisions
FacultyofEconomicsAdministration,Faculty_of_Business_and_Accountancy
Funders
Centre for Poverty and Development Studies (CPDS), Faculty of Economics and Administration, University of Malaya (Grant no: PD002-2017)
Publication Title
Business History
Volume
61
Issue
4
Publisher
Taylor & Francis