Prominence of independent Independent board Quasi-legal structure [not and committed board was appointed by the Minister registered under the encouraged. with fiduciary duties. Company’s Act]. Registered as a non-profit No indemnity insurance PFMA restrictions on capital entity under the companies deposit raising section 66. Act of 1913/1994 with the Regulated by National Exemption notice 887 [for Register of Joint Stock Credit Act and National deposit taking] by FSC’s Companies. Regulatory Act [for pricing and savings schemes. The legal structure allows of end-user loans] No indemnity insurance flexibility, authority and deposit. power to run its Regulated by National programmes, implement Credit Act and National and manage them as an Regulatory Act [for pricing independent entity. of end-user loans] PKSF was allowed to research around regulatory framework on deposit taking legislation. Appropriate deposit taking and insurance legislation Performance Highlights: Performance Highlights: Performance Highlights: Four main products are offered: Three main products are offered: Main products are offered: Credit programme Credit programme Credit programme Institutional development Institutional development Venture capital Training programme Technical Support Institutional grant support Research Number of FI’s 42 [limited] Number of FI’s supported 210; Number of active borrowers 47,268 Number of FI’s10; Number of active borrowers > 6.8m Number of savers 17,255 Number of active borrowers 205,267; Amount disbursed to FI’s >$434,2m Amount disbursed to FI’s R57,1m Amount disbursed to FI’s R681,7m Amount disbursed to individuals > Impairment rate 44% Impairment rate 16.3%; $3,314m 60% of the portfolio went to Recovery Rate 98% households earning < R3,500pm >90% women FINDINGS (LESSONS) Bangladesh experience 1970’s this was a period of experimentation,(trial and error). 1.1 – 1980’s this was a period of expansion and consolidation of the Grameen experiment. – 1990’s - characterised by innovations around policy, regulatory and legal framework. 2000 to-date successes and achievements 14m poor households have access to – microfinance Hulme and Karen Moore” “David 1.2 A once off substantial equity funding provided by government of Bangladesh , with credit facilities and was further allowed to gear and leverage other funding sources.
Prominence of independent and committed board was encouraged. Registered as a non-profit entity under the companies Act of 1913/1994 with the Register of Joint Stock Companies. The legal structure allows flexibility, authority and power to run its programmes, implement and manage them as an independent entity. PKSF was allowed to research around regulatory framework on deposit taking legislation. Appropriate deposit taking and insurance legislation Independent board appointed by the Minister with fiduciary duties. No indemnity insurance deposit Regulated by National Credit Act and National Regulatory Act [for pricing of end-user loans] Quasi-legal structure [not registered under the Company’s Act]. PFMA restrictions on capital raising section 66. Exemption notice 887 [for deposit taking] by FSC’s and savings schemes. No indemnity insurance deposit. Regulated by National Credit Act and National Regulatory Act [for pricing of end-user loans] Performance Highlights: Four main products are offered: Credit programme Institutional development Training programme Research Number of FI’s supported 210; Number of active borrowers > 6.8m Amount disbursed to FI’s >$434,2m Amount disbursed to individuals > $3,314m Recovery Rate 98% >90% women Performance Highlights: Main products are offered: Credit programme Venture capital Institutional grant support [limited] Number of FI’s10; Number of active borrowers 205,267; Amount disbursed to FI’s R681,7m Impairment rate 16.3%; 60% of the portfolio went to households earning < R3,500pm Performance Highlights: Three main products are offered: Credit programme Institutional development Technical Support Number of FI’s 42 Number of active borrowers 47,268 Number of savers 17,255 Amount disbursed to FI’s R57,1m Impairment rate 44% FINDINGS (LESSONS) Bangladesh experience 1.1 1970’s – this was a period of experimentation,(trial and error). 1980’s – this was a period of expansion and consolidation of the Grameen experiment. 1990’s - characterised by innovations around policy, regulatory and legal framework. 2000 to-date successes and achievements – 14m poor households have access to microfinance “David Hulme and Karen Moore” 1.2 A once off substantial equity funding provided by government of Bangladesh , with credit facilities and was further allowed to gear and leverage other funding sources.