|Titre||State-owned Agricultural Development Banks: Lessons and Opportunities for Microfinance|
|Auteur||Gonzalez-Vega, C.; Graham, D.H.|
|Langue du contenu||English (en)|
|Type de document||Paper|
|Date de publication||1995|
|Description||This paper examines the potential role of state-owned agricultural development banks as a source of microfinance services. It provides a conceptual framework to interpret the failure of these banks, their lack of success in reaching the poor and their lack of viability. Some key defining features are identified as:|
Histories of development banks are used to illustrate the issues.
- their specialisation in agricultural credit with the accompanying instances of market failure and high monitoring costs,
- their development orientation and lack of profit motive,
- state ownership, with resulting inadequate internal control and incentive problems.
The paper goes on to discuss the preconditions for success in restructuring these banks and outlines the elements of a framework for reform and in particular a reorinetation towards microfinance. The authors conclude that this would be an attractive proposition in those case where the bank possesses valuable information and human capital and an extensive network of branches, which reach into sufficiently densely populated rural areas, and where there is a hospitable macroeconomic, policy and regulatory environment.
|Editeur||Ohio State University|
|Nombre de pages||45 pp.|
|Edition||Economics and Sociology Occasional Paper|
|ID de collection||199506|
|Mots-clés|| AGRICULTURAL BANKS, DEVELOPMENT BANKS, MICROFINANCE|