Handling default risks in microfinance: the case of Bangladesh

Purpose – This paper aims to identify incidences of default risks in microfinance. Design/methodology/approach – Semi-structured interviews were conducted with individual borrowers in Grameen Bank. Upon completing the interview session from 40 respondents, the results of the interviews are interp...

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Main Authors: Kassim, Salina, Rahman, Mahfuzur
Format: Article
Language:English
English
Published: Emerald Group Publishing Ltd. 2018
Subjects:
Online Access:http://irep.iium.edu.my/70268/
http://irep.iium.edu.my/70268/
http://irep.iium.edu.my/70268/
http://irep.iium.edu.my/70268/1/70268_Handling%20default%20risks%20in_article.pdf
http://irep.iium.edu.my/70268/2/70268_Handling%20default%20risks%20in_scopus.pdf
id iium-70268
recordtype eprints
spelling iium-702682019-01-29T01:52:52Z http://irep.iium.edu.my/70268/ Handling default risks in microfinance: the case of Bangladesh Kassim, Salina Rahman, Mahfuzur HG Finance HG3368 Islamic Banking and Finance Purpose – This paper aims to identify incidences of default risks in microfinance. Design/methodology/approach – Semi-structured interviews were conducted with individual borrowers in Grameen Bank. Upon completing the interview session from 40 respondents, the results of the interviews are interpreted by a comprehensive content analysis. Findings – This study identifies the incidences of defaults in microfinance, which are post-disbursement monitoring, technical assistance, inexperienced field workers, weekly payment, accessible database, family member illness, hiding business, lack of motivation and over-stretched financial commitments. Among these incidences, the findings indicate that post-disbursement supervision is highly relevant in ensuring the success of microfinance because 80 per cent of the recipients of microfinance are illiterate women. Originality/value – This study would be helpful for the investment companies, financial institutions, creditors and borrowers of microfinance. The financial institutions and investment companies need to identify borrower capacity and any obligation that may impede with repayment. It may help them to maximize returns on profit and minimize the risk of losses which contribute to economic growth. Emerald Group Publishing Ltd. 2018-11-05 Article NonPeerReviewed application/pdf en http://irep.iium.edu.my/70268/1/70268_Handling%20default%20risks%20in_article.pdf application/pdf en http://irep.iium.edu.my/70268/2/70268_Handling%20default%20risks%20in_scopus.pdf Kassim, Salina and Rahman, Mahfuzur (2018) Handling default risks in microfinance: the case of Bangladesh. Qualitative Research in Financial Markets, 10 (4). pp. 363-380. ISSN 1755-4179 E-ISSN 1755-4187 https://www.emeraldinsight.com/doi/pdfplus/10.1108/QRFM-03-2017-0018 10.1108/QRFM-03-2017-0018
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
English
topic HG Finance
HG3368 Islamic Banking and Finance
spellingShingle HG Finance
HG3368 Islamic Banking and Finance
Kassim, Salina
Rahman, Mahfuzur
Handling default risks in microfinance: the case of Bangladesh
description Purpose – This paper aims to identify incidences of default risks in microfinance. Design/methodology/approach – Semi-structured interviews were conducted with individual borrowers in Grameen Bank. Upon completing the interview session from 40 respondents, the results of the interviews are interpreted by a comprehensive content analysis. Findings – This study identifies the incidences of defaults in microfinance, which are post-disbursement monitoring, technical assistance, inexperienced field workers, weekly payment, accessible database, family member illness, hiding business, lack of motivation and over-stretched financial commitments. Among these incidences, the findings indicate that post-disbursement supervision is highly relevant in ensuring the success of microfinance because 80 per cent of the recipients of microfinance are illiterate women. Originality/value – This study would be helpful for the investment companies, financial institutions, creditors and borrowers of microfinance. The financial institutions and investment companies need to identify borrower capacity and any obligation that may impede with repayment. It may help them to maximize returns on profit and minimize the risk of losses which contribute to economic growth.
format Article
author Kassim, Salina
Rahman, Mahfuzur
author_facet Kassim, Salina
Rahman, Mahfuzur
author_sort Kassim, Salina
title Handling default risks in microfinance: the case of Bangladesh
title_short Handling default risks in microfinance: the case of Bangladesh
title_full Handling default risks in microfinance: the case of Bangladesh
title_fullStr Handling default risks in microfinance: the case of Bangladesh
title_full_unstemmed Handling default risks in microfinance: the case of Bangladesh
title_sort handling default risks in microfinance: the case of bangladesh
publisher Emerald Group Publishing Ltd.
publishDate 2018
url http://irep.iium.edu.my/70268/
http://irep.iium.edu.my/70268/
http://irep.iium.edu.my/70268/
http://irep.iium.edu.my/70268/1/70268_Handling%20default%20risks%20in_article.pdf
http://irep.iium.edu.my/70268/2/70268_Handling%20default%20risks%20in_scopus.pdf
first_indexed 2023-09-18T21:39:46Z
last_indexed 2023-09-18T21:39:46Z
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