Open AccessA Survey of Literature on the Sustainability of Grameen Bank
Author(s) -
Mamunur Rashid,
Taslima Begum,
Md. Mizanur Rahman,
Md. Monimul Haque
Publication year - 2008
Publication title -
business review
Language(s) - English
Resource type - Journals
eISSN - 2664-3502
pISSN - 1811-3788
DOI - 10.35649/kubr.2005.5.1.8
Subject(s) - microfinance , subsidy , poverty , sustainability , business , investment (military) , finance , economics , economic growth , political science , ecology , biology , politics , law , market economy
This paper is designed to survey the existing literatures on the issue of financial sustainability of microfinance institutions working with group-lending approach. The paper is based on secondary data and information. The most highlighted feature of microfinance program is embodied in the innovation of group-lending approach introduced by the Grameen Bank (GB) in Bangladesh. Even though most of the microfinance institutions have their striking results of reaching to the poorest borrowers with high repayment rates, most of them are, however, still dependent on the subsidized or soft-term loans. Grameen Bank, with all its success in poverty alleviation and in increasing living standard of the rural poor, is yet to achieve financial sustainability to a fullest form. Should it increase the lending rate, should it reduce its operating costs to a greater extent, or should it try to diversify its investment, or should it try to mobilize savings as a base for re-lending? All these questions are still open for further research and planning.