Microfinance as a Regular Commercial Banking Product

Gallardo, Joselito S. ; Randhawa, Bikki K. ; Sacay, Orlando J.

World Bank, Washington, DC

关键词: ACCOUNTING;    ADMINISTRATIVE COSTS;    ASSET TURNOVER;    AUTONOMY;    BANK;   

RP-ID  :  18327

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Hatton National Bank is the largestprivate commercial bank in Sri Lanka and one of the handfulof commercial banks in the world that have initiatedmicrofinance programs. The bank launched its program in 1989as an integral part of its operations, motivated by twobusiness objectives. First, the program aims to protect thebank s market share from state-owned rural banks and nonbankmicrofinance institutions such as credit cooperatives,especially in rural and semiurban areas, where more than 75percent of the country s population lives. Second, theprogram is an investment in the future: it targetsmicrofinance clients with the potential to grow into smallenterprises in the formal sector. This Note profiles HattonNational Bank's microfinance operations, highlightingtwo questions: How does a privately owned bank downscalepart of its operations for microfinance? Is microfinanceconsistent with profit orientation?