Financing microfinance – the ICICI Bank partnership model
نویسنده
چکیده
March 2005 57 Bindu Ananth is a Manager at ICICI Bank. She has worked in ICICI Bank's microfinance practice for over three years and is currently the co-ordinator of the Centre for MicroFinance Research. The views presented in this paper are solely those of the author and do not in any way reflect the views of ICICI Bank. Capital constraint is an issue impeding scaling up of microfinance in India. Based on an analysis of traditional financing models and ICICI Bank’s experience in India, it analyses the ‘partnership model’ of financing microfinance institutions (MFIs). This model is unique in that it combines both debt as well as mezzanine finance to the MFI in a manner that lets it increase outreach rapidly, while unlocking large amounts of wholesale funds available in the commercial banking sector in India. The paper also discusses building links to capital markets for financing microfinance through securitization. It concludes by highlighting certain key enablers for an environment of rapid microfinance growth including regulator support for hybrid models of outreach and investments in training and funding of initial expenses for new/emerging MFIs.
منابع مشابه
Financing Microenterprises: Creating a Potential Value-Based Hybrid Model for Islamic Microfinance
The main purpose of this paper is to examine the relevance of Islamic microfinance in the light of ongoing erosion of confidence in the viability of current financial system, full of speculatory finance in the prevailing global financial market. For example, the sub-prime crisis of 2007-2008 in the US with its effects all over the world was mainly due to the inadequate market discipline which i...
متن کاملIslamic Microfinance, Providing Credit to the Poor:A Case Study of Iran1
The general perception of Islamic finance is that it prohibits the practice of paying and receiving interest, but Islamicfinance is much broader than interest rate prohibition. Islamic financial services can be viewed as a set of financialservices which are diversified based on the needs of society.Since in THE Iranian Economy most of the enterprises are micro and/or small, micro financing seem...
متن کاملICT Helping to Scale up Microfinance: The Case of a Successful Bank-MFI Partnership in Brazil
Finding ways to downscale microfinance is one of the current challenges facing commercial banks, especially in developing countries. As banks have a poor knowledge of microfinance, operating in this market will require capacity-building, innovative business models and new technological architectures. This paper discusses how one particular architecture – the Brazilian model of correspondent ban...
متن کاملInvestigating the performance of Qarzat al-Hasna institutions in production as micro-financing institutions in Iran
The purpose of this study was to investigate the performance of Qarzat al-Hasna institutions as microfinance institutions in Iran. For this purpose, the statistical information of the country's banking system in the period 2009 to 2020 and the panel data method were used. In order to estimate this relationship, diagnostic tests were performed on the research variables and finally the experiment...
متن کاملThe Microfinance Revolution: An Overview
The Nobel Prize committee awarded the 2006 Nobel Peace Prize to Muhammad Yunus and the Grameen Bank “for their efforts to create economic and social development from below.” The microfinance revolution has come a long way since Yunus first provided financing to the poor in Bangladesh. The committee has recognized microfinance as “an important liberating force” and an “ever more important instru...
متن کامل