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recordtype oai_dc
spelling okr-10986-239822021-04-23T14:04:18Z Making Microfinance Work Better in the Middle East and North Africa Brandsma, Judith Hart, Laurence CHANNELS COLLATERAL CONSOLIDATION DEBT DEPOSITS EMPLOYMENT ENVIRONMENTAL QUALITY FINANCIAL DATA FINANCIAL SERVICES FOUNDATIONS HEALTH SERVICES INTEREST RATES ISLAMIC BANKING LAWS LIABILITY MANAGEMENT LIQUIDITY LITERACY LOAN PORTFOLIOS MANAGEMENT INFORMATION SYSTEMS MICROCREDIT MICROFINANCE MICROFINANCE INDUSTRY MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE PROGRAMS MICROFINANCE REGULATION MICROFINANCE TRAINING MICROFINANCE WORK MICROLOANS NORTH AFRICA PRIVATE BANKS PRIVATE COMPANY RURAL FINANCE RURAL MICROFINANCE SAVINGS SMALL BUSINESS SMALL BUSINESSES SMALL LOANS SUBSIDIZED CREDIT SUSTAINABILITY SUSTAINABLE MICROFINANCE SUSTAINABLE MICROFINANCE INSTITUTIONS TECHNICAL ASSISTANCE WEST WORKING CAPITAL This report analyzes microfinance in the Middle East and North Africa, and offers recommendations on how to further develop the industry. Microfinance is the provision of financial services to the entrepreneurial poor, a definition with two important features: it emphasizes a range of financial services-not just credit-and it emphasizes the entrepreneurial poor. The region's emerging microfinance industry differs from those in other parts of the world. Expectations are too high: microfinance is not a panacea for, or solution to unemployment, for narrowly defined, most microfinance institutions only offer credit for business activities, and do not offer savings or deposit services. Governments are interested in regulating microfinance, and several countries have passed laws on microfinance, efforts that risk jeopardizing the industry's healthy development. Moreover, second generation issues may slow the industry's growth, demonstrated by the fact that many microfinance institutions are experiencing crises, after rapid initial growth, and need time to consolidate and restructure. Islamic finance methodologies are being applied by new microfinance programs, and existing programs that use Islamic finance-some of them very large-have become more visible. This report draws heavily on two Bank surveys of microfinance institutions in the region, one assessing developments as of the end of 1997, and the other as of end of 1999. Egypt remains the region's leading provider but has lost market share, while Morocco is second, having experienced dramatic growth since 1997. But other countries, such as Lebanon, and the West Bank and Gaza, saw their microfinance industries stagnate, or even shrink. This was mainly because microfinance players in these countries went through restructuring, and consolidation as they faced second generation issues. The report stipulates that for programs to reach the scale of microfinance institutions as in other parts of the world, they must raise funds commercially-including taking deposits, which will also enable them to broaden their approach to microfinance, moving beyond credit for businesses. And, by mobilizing savings and deposits, they will be able to serve many more clients. Donors and practitioners alike, should be prepared for the array of new training needs, deciding to transform into a new legal entity, and institutional form. Policymakers, meanwhile, should be prepared to create legal environments appropriate for prudent, but growing microfinance. 2016-03-31T16:31:57Z 2016-03-31T16:31:57Z 2004-06-01 Report http://documents.worldbank.org/curated/en/2004/06/4939588/making-microfinance-work-better-middle-east-north-africa http://hdl.handle.net/10986/23982 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Middle East and North Africa Middle East North Africa
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 CHANNELS
COLLATERAL
CONSOLIDATION
DEBT
DEPOSITS
EMPLOYMENT
ENVIRONMENTAL QUALITY
FINANCIAL DATA
FINANCIAL SERVICES
FOUNDATIONS
HEALTH SERVICES
INTEREST RATES
ISLAMIC BANKING
LAWS
LIABILITY MANAGEMENT
LIQUIDITY
LITERACY
LOAN PORTFOLIOS
MANAGEMENT INFORMATION SYSTEMS
MICROCREDIT
MICROFINANCE
MICROFINANCE INDUSTRY
MICROFINANCE INSTITUTION
MICROFINANCE INSTITUTIONS
MICROFINANCE PROGRAMS
MICROFINANCE REGULATION
MICROFINANCE TRAINING
MICROFINANCE WORK
MICROLOANS
NORTH AFRICA
PRIVATE BANKS
PRIVATE COMPANY
RURAL FINANCE
RURAL MICROFINANCE
SAVINGS
SMALL BUSINESS
SMALL BUSINESSES
SMALL LOANS
SUBSIDIZED CREDIT
SUSTAINABILITY
SUSTAINABLE MICROFINANCE
SUSTAINABLE MICROFINANCE INSTITUTIONS
TECHNICAL ASSISTANCE
WEST
WORKING CAPITAL
spellingShingle CHANNELS
COLLATERAL
CONSOLIDATION
DEBT
DEPOSITS
EMPLOYMENT
ENVIRONMENTAL QUALITY
FINANCIAL DATA
FINANCIAL SERVICES
FOUNDATIONS
HEALTH SERVICES
INTEREST RATES
ISLAMIC BANKING
LAWS
LIABILITY MANAGEMENT
LIQUIDITY
LITERACY
LOAN PORTFOLIOS
MANAGEMENT INFORMATION SYSTEMS
MICROCREDIT
MICROFINANCE
MICROFINANCE INDUSTRY
MICROFINANCE INSTITUTION
MICROFINANCE INSTITUTIONS
MICROFINANCE PROGRAMS
MICROFINANCE REGULATION
MICROFINANCE TRAINING
MICROFINANCE WORK
MICROLOANS
NORTH AFRICA
PRIVATE BANKS
PRIVATE COMPANY
RURAL FINANCE
RURAL MICROFINANCE
SAVINGS
SMALL BUSINESS
SMALL BUSINESSES
SMALL LOANS
SUBSIDIZED CREDIT
SUSTAINABILITY
SUSTAINABLE MICROFINANCE
SUSTAINABLE MICROFINANCE INSTITUTIONS
TECHNICAL ASSISTANCE
WEST
WORKING CAPITAL
Brandsma, Judith
Hart, Laurence
Making Microfinance Work Better in the Middle East and North Africa
geographic_facet Middle East and North Africa
Middle East
North Africa
description This report analyzes microfinance in the Middle East and North Africa, and offers recommendations on how to further develop the industry. Microfinance is the provision of financial services to the entrepreneurial poor, a definition with two important features: it emphasizes a range of financial services-not just credit-and it emphasizes the entrepreneurial poor. The region's emerging microfinance industry differs from those in other parts of the world. Expectations are too high: microfinance is not a panacea for, or solution to unemployment, for narrowly defined, most microfinance institutions only offer credit for business activities, and do not offer savings or deposit services. Governments are interested in regulating microfinance, and several countries have passed laws on microfinance, efforts that risk jeopardizing the industry's healthy development. Moreover, second generation issues may slow the industry's growth, demonstrated by the fact that many microfinance institutions are experiencing crises, after rapid initial growth, and need time to consolidate and restructure. Islamic finance methodologies are being applied by new microfinance programs, and existing programs that use Islamic finance-some of them very large-have become more visible. This report draws heavily on two Bank surveys of microfinance institutions in the region, one assessing developments as of the end of 1997, and the other as of end of 1999. Egypt remains the region's leading provider but has lost market share, while Morocco is second, having experienced dramatic growth since 1997. But other countries, such as Lebanon, and the West Bank and Gaza, saw their microfinance industries stagnate, or even shrink. This was mainly because microfinance players in these countries went through restructuring, and consolidation as they faced second generation issues. The report stipulates that for programs to reach the scale of microfinance institutions as in other parts of the world, they must raise funds commercially-including taking deposits, which will also enable them to broaden their approach to microfinance, moving beyond credit for businesses. And, by mobilizing savings and deposits, they will be able to serve many more clients. Donors and practitioners alike, should be prepared for the array of new training needs, deciding to transform into a new legal entity, and institutional form. Policymakers, meanwhile, should be prepared to create legal environments appropriate for prudent, but growing microfinance.
format Report
author Brandsma, Judith
Hart, Laurence
author_facet Brandsma, Judith
Hart, Laurence
author_sort Brandsma, Judith
title Making Microfinance Work Better in the Middle East and North Africa
title_short Making Microfinance Work Better in the Middle East and North Africa
title_full Making Microfinance Work Better in the Middle East and North Africa
title_fullStr Making Microfinance Work Better in the Middle East and North Africa
title_full_unstemmed Making Microfinance Work Better in the Middle East and North Africa
title_sort making microfinance work better in the middle east and north africa
publisher World Bank, Washington, DC
publishDate 2016
url http://documents.worldbank.org/curated/en/2004/06/4939588/making-microfinance-work-better-middle-east-north-africa
http://hdl.handle.net/10986/23982
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