Handling default risks in microfinance: the case of Bangladesh
Purpose – This paper aims to identify incidences of default risks in microfinance. Design/methodology/approach – Semi-structured interviews were conducted with individual borrowers in Grameen Bank. Upon completing the interview session from 40 respondents, the results of the interviews are interp...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
Emerald Group Publishing Ltd.
2018
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| Online Access: | http://irep.iium.edu.my/70268/ http://irep.iium.edu.my/70268/1/70268_Handling%20default%20risks%20in_article.pdf http://irep.iium.edu.my/70268/2/70268_Handling%20default%20risks%20in_scopus.pdf |
| _version_ | 1848787261314826240 |
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| author | Kassim, Salina Rahman, Mahfuzur |
| author_facet | Kassim, Salina Rahman, Mahfuzur |
| author_sort | Kassim, Salina |
| building | IIUM Repository |
| collection | Online Access |
| description | Purpose – This paper aims to identify incidences of default risks in microfinance.
Design/methodology/approach – Semi-structured interviews were conducted with individual
borrowers in Grameen Bank. Upon completing the interview session from 40 respondents, the results of the
interviews are interpreted by a comprehensive content analysis.
Findings – This study identifies the incidences of defaults in microfinance, which are post-disbursement
monitoring, technical assistance, inexperienced field workers, weekly payment, accessible database, family
member illness, hiding business, lack of motivation and over-stretched financial commitments. Among these
incidences, the findings indicate that post-disbursement supervision is highly relevant in ensuring the success
of microfinance because 80 per cent of the recipients of microfinance are illiterate women.
Originality/value – This study would be helpful for the investment companies, financial institutions,
creditors and borrowers of microfinance. The financial institutions and investment companies need to identify
borrower capacity and any obligation that may impede with repayment. It may help them to maximize
returns on profit and minimize the risk of losses which contribute to economic growth. |
| first_indexed | 2025-11-14T17:22:07Z |
| format | Article |
| id | iium-70268 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T17:22:07Z |
| publishDate | 2018 |
| publisher | Emerald Group Publishing Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-702682019-01-29T01:52:52Z http://irep.iium.edu.my/70268/ Handling default risks in microfinance: the case of Bangladesh Kassim, Salina Rahman, Mahfuzur HG Finance HG3368 Islamic Banking and Finance Purpose – This paper aims to identify incidences of default risks in microfinance. Design/methodology/approach – Semi-structured interviews were conducted with individual borrowers in Grameen Bank. Upon completing the interview session from 40 respondents, the results of the interviews are interpreted by a comprehensive content analysis. Findings – This study identifies the incidences of defaults in microfinance, which are post-disbursement monitoring, technical assistance, inexperienced field workers, weekly payment, accessible database, family member illness, hiding business, lack of motivation and over-stretched financial commitments. Among these incidences, the findings indicate that post-disbursement supervision is highly relevant in ensuring the success of microfinance because 80 per cent of the recipients of microfinance are illiterate women. Originality/value – This study would be helpful for the investment companies, financial institutions, creditors and borrowers of microfinance. The financial institutions and investment companies need to identify borrower capacity and any obligation that may impede with repayment. It may help them to maximize returns on profit and minimize the risk of losses which contribute to economic growth. Emerald Group Publishing Ltd. 2018-11-05 Article NonPeerReviewed application/pdf en http://irep.iium.edu.my/70268/1/70268_Handling%20default%20risks%20in_article.pdf application/pdf en http://irep.iium.edu.my/70268/2/70268_Handling%20default%20risks%20in_scopus.pdf Kassim, Salina and Rahman, Mahfuzur (2018) Handling default risks in microfinance: the case of Bangladesh. Qualitative Research in Financial Markets, 10 (4). pp. 363-380. ISSN 1755-4179 E-ISSN 1755-4187 https://www.emeraldinsight.com/doi/pdfplus/10.1108/QRFM-03-2017-0018 10.1108/QRFM-03-2017-0018 |
| spellingShingle | HG Finance HG3368 Islamic Banking and Finance Kassim, Salina Rahman, Mahfuzur Handling default risks in microfinance: the case of Bangladesh |
| title | Handling default risks in microfinance: the case of Bangladesh |
| title_full | Handling default risks in microfinance: the case of Bangladesh |
| title_fullStr | Handling default risks in microfinance: the case of Bangladesh |
| title_full_unstemmed | Handling default risks in microfinance: the case of Bangladesh |
| title_short | Handling default risks in microfinance: the case of Bangladesh |
| title_sort | handling default risks in microfinance: the case of bangladesh |
| topic | HG Finance HG3368 Islamic Banking and Finance |
| url | http://irep.iium.edu.my/70268/ http://irep.iium.edu.my/70268/ http://irep.iium.edu.my/70268/ http://irep.iium.edu.my/70268/1/70268_Handling%20default%20risks%20in_article.pdf http://irep.iium.edu.my/70268/2/70268_Handling%20default%20risks%20in_scopus.pdf |