Financial Sector Policy and the Poor : Selected Findings and Issues
This paper presents new empirical evidence on how financial sector policy can help the poor. It is often thought that promotion of specialized microfinance institutions is the best or only way forward. However, a strong mainstream financial system...
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Washington, DC: World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5342606/financial-sector-policy-poor-selected-findings-issues http://hdl.handle.net/10986/14874 |
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okr-10986-148742021-04-23T14:03:12Z Financial Sector Policy and the Poor : Selected Findings and Issues Honohan, Patrick FINANCIAL SECTOR POOR PEOPLE MICROFINANCE SUBSIDY VULNERABLE PEOPLE SUSTAINABILITY FINANCIAL INSTITUTIONS CREDIT SUBSIDY POLICY IMPLICATIONS FUNDING FUNDS FINANCIAL SYSTEMS DISCRIMINATION PROFITABILITY POVERTY RATES LENDING This paper presents new empirical evidence on how financial sector policy can help the poor. It is often thought that promotion of specialized microfinance institutions is the best or only way forward. However, a strong mainstream financial system is also pro-poor-perhaps even more so: while mainstream financial depth is measurably associated with lower poverty, for microfinance this is not yet so. The roles played by microfinance and mainstream finance in tackling poverty should be regarded as complementary and overlapping rather than as competing alternatives. The essential similarities between the two will become more evident as individual microfinance firms, or associations of firms, grow to the scale needed for sustainability. Policy design that recognizes the need for larger and stronger microfinance institutions poses no threat to the health of mainstream finance. Such a policy would not impose low interest rate ceilings; nevertheless, the goal of protecting the vulnerable from credit market abuses and prejudice should not be neglected in an effective package of policies favorable to the growth of both micro and mainstream finance. 2013-08-07T20:09:58Z 2013-08-07T20:09:58Z 2004-09 http://documents.worldbank.org/curated/en/2004/09/5342606/financial-sector-policy-poor-selected-findings-issues 0-8213-5967-3 http://hdl.handle.net/10986/14874 English en_US World Bank Working Paper;No. 43 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
FINANCIAL SECTOR POOR PEOPLE MICROFINANCE SUBSIDY VULNERABLE PEOPLE SUSTAINABILITY FINANCIAL INSTITUTIONS CREDIT SUBSIDY POLICY IMPLICATIONS FUNDING FUNDS FINANCIAL SYSTEMS DISCRIMINATION PROFITABILITY POVERTY RATES LENDING |
| spellingShingle |
FINANCIAL SECTOR POOR PEOPLE MICROFINANCE SUBSIDY VULNERABLE PEOPLE SUSTAINABILITY FINANCIAL INSTITUTIONS CREDIT SUBSIDY POLICY IMPLICATIONS FUNDING FUNDS FINANCIAL SYSTEMS DISCRIMINATION PROFITABILITY POVERTY RATES LENDING Honohan, Patrick Financial Sector Policy and the Poor : Selected Findings and Issues |
| relation |
World Bank Working Paper;No. 43 |
| description |
This paper presents new empirical
evidence on how financial sector policy can help the poor.
It is often thought that promotion of specialized
microfinance institutions is the best or only way forward.
However, a strong mainstream financial system is also
pro-poor-perhaps even more so: while mainstream financial
depth is measurably associated with lower poverty, for
microfinance this is not yet so. The roles played by
microfinance and mainstream finance in tackling poverty
should be regarded as complementary and overlapping rather
than as competing alternatives. The essential similarities
between the two will become more evident as individual
microfinance firms, or associations of firms, grow to the
scale needed for sustainability. Policy design that
recognizes the need for larger and stronger microfinance
institutions poses no threat to the health of mainstream
finance. Such a policy would not impose low interest rate
ceilings; nevertheless, the goal of protecting the
vulnerable from credit market abuses and prejudice should
not be neglected in an effective package of policies
favorable to the growth of both micro and mainstream finance. |
| format |
Publications & Research :: Publication |
| author |
Honohan, Patrick |
| author_facet |
Honohan, Patrick |
| author_sort |
Honohan, Patrick |
| title |
Financial Sector Policy and the Poor : Selected Findings and Issues |
| title_short |
Financial Sector Policy and the Poor : Selected Findings and Issues |
| title_full |
Financial Sector Policy and the Poor : Selected Findings and Issues |
| title_fullStr |
Financial Sector Policy and the Poor : Selected Findings and Issues |
| title_full_unstemmed |
Financial Sector Policy and the Poor : Selected Findings and Issues |
| title_sort |
financial sector policy and the poor : selected findings and issues |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/09/5342606/financial-sector-policy-poor-selected-findings-issues http://hdl.handle.net/10986/14874 |
| _version_ |
1764426058280468480 |