Microfinance as a Regular Commercial Banking Product
Microfinance as a Regular Commercial Banking Product
Hatton National Bank is the largest private commercial bank in Sri Lanka and one of the handful of commercial banks in the world that have initiated microfinance programs. The bank launched its program in 1989 as an integral part of its operations, motivated by two business objectives. First, the program aims to protect the bank s market share from state-owned rural banks and nonbank microfinance institutions such as credit cooperatives, especially in rural and semiurban areas, where more than 75 percent of the country s population lives. Second, the program is an investment in the future: it targets microfinance clients with the potential to grow into small enterprises in the formal sector. This Note profiles Hatton National Bank's microfinance operations, highlighting two questions: How does a privately owned bank downscale part of its operations for microfinance? Is microfinance consistent with profit orientation?
- World Bank United States
- World Bank United States
AUTONOMY, DEPOSIT MOBILIZATION, MANAGEMENT REPORTS, COMMUNITY PARTICIPATION, FINANCIAL DATA, OPERATING EXPENSES, POVERTY ASSESSMENTS, INDONESIA, RURAL BANKS, DATA COLLECTING, EQUITY FINANCING, TRANSACTION COSTS, MATURITIES, ASSET TURNOVER, PERFORMANCE CRITERIA, ACCOUNTING, PRODUCTIVITY, MICRO-CREDIT PROGRAMS, EXPANSION, CORPORATE RESTRUCTURING, SMALL ENTERPRISES, COLLATERAL, BANKING REGULATIONS, SAVINGS ACCOUNTS, UNSECURED LOANS MICROFINANCE, BANK, TIME DEPOSITS, INTERNATIONAL BANKING, BANKING SERVICES, DATA BASE MANAGEMENT SYSTEMS, MORTGAGE LOANS, BRANCHES, PERFORMANCE STANDARDS, DEPOSITS, LOAN LOSS PROVISIONS, SUSTAINABILITY, COMMERCIAL BANKS, LOAN INVESTMENTS, CAPITAL LOANS, ADMINISTRATIVE COSTS, POVERTY MITIGATION, MICROFINANCE, RURAL AREAS, MICROENTERPRISES, GROSS REVENUES, INTEREST EXPENSE, INVESTMENT BANKING, PERFORMANCE EVALUATION, EARNING POWER, INTEREST RATES, POVERTY REDUCTION, MICROLOANS, LOAN REPAYMENTS, SAVINGS, MICROFINANCE PROGRAMS, CAPITAL ADEQUACY, FINANCIAL REPORTING, COMMERCIAL LOANS, PROFITABILITY, OPERATING COSTS, BANKING SYSTEMS
AUTONOMY, DEPOSIT MOBILIZATION, MANAGEMENT REPORTS, COMMUNITY PARTICIPATION, FINANCIAL DATA, OPERATING EXPENSES, POVERTY ASSESSMENTS, INDONESIA, RURAL BANKS, DATA COLLECTING, EQUITY FINANCING, TRANSACTION COSTS, MATURITIES, ASSET TURNOVER, PERFORMANCE CRITERIA, ACCOUNTING, PRODUCTIVITY, MICRO-CREDIT PROGRAMS, EXPANSION, CORPORATE RESTRUCTURING, SMALL ENTERPRISES, COLLATERAL, BANKING REGULATIONS, SAVINGS ACCOUNTS, UNSECURED LOANS MICROFINANCE, BANK, TIME DEPOSITS, INTERNATIONAL BANKING, BANKING SERVICES, DATA BASE MANAGEMENT SYSTEMS, MORTGAGE LOANS, BRANCHES, PERFORMANCE STANDARDS, DEPOSITS, LOAN LOSS PROVISIONS, SUSTAINABILITY, COMMERCIAL BANKS, LOAN INVESTMENTS, CAPITAL LOANS, ADMINISTRATIVE COSTS, POVERTY MITIGATION, MICROFINANCE, RURAL AREAS, MICROENTERPRISES, GROSS REVENUES, INTEREST EXPENSE, INVESTMENT BANKING, PERFORMANCE EVALUATION, EARNING POWER, INTEREST RATES, POVERTY REDUCTION, MICROLOANS, LOAN REPAYMENTS, SAVINGS, MICROFINANCE PROGRAMS, CAPITAL ADEQUACY, FINANCIAL REPORTING, COMMERCIAL LOANS, PROFITABILITY, OPERATING COSTS, BANKING SYSTEMS
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