Abstract

Liberalization turned out to be not enough to ensure the provision of financial services to the poor, especially small and micro businesses. Special institutions such as Grameen Bank in Bangladesh experimented successfully with credit technologies and governance structures which showed the viability of institutions that are at the same time commercially sustainable and target-group oriented. Recent strategies center on upgrading rotating funds of NGOs, downscaling commercial and development banks and starting from scratch with specialized institutions.

JEL Classification: D14; G21; O15; O16.