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:	HG Finance HG3368 Islamic Banking and Finance
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
_version_	1777413061108301824

Handling default risks in microfinance: the case of Bangladesh

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