The Synthesis of Grameen Bank, BRAC and ASA Microfinance Approaches in Bangladesh

Abstract

The paper describes the operational mechanism/institutional innovation of key Microfinance Service Providers (MSPs) in Bangladesh. Grameen Bank (GB), Bangladesh Rural Advancement Committee (BRAC) and Association for Social Advancement (ASA) have chosen to investigate the microfinance approaches. Selected MSPs are dominating microfinance market in Bangladesh in outreach, outstanding loans, savings and efficient service delivery mechanism. They offer micro-credit, savings and social services to the poor who were deprived from such access offered by conventional banks. GB, BRAC and ASA have been able to demonstrate the effectiveness of microfinance program towards sustainable development for the rural poor in Bangladesh. They have accomplished their effective and efficient management skills, innovative approaches and decentralized management systems. Meanwhile, microfinance clients particularly women have proven their talents for utilizing loans, maintaining regular repayment, credit discipline and the sincerity which have extended microfinance business scope in a sustainable manner. The lesson learned from GB, BRAC and ASA's microfinance approaches that the organization can work so successfully in the villages even in slum areas of the poorest countries in the world. Thus, the approaches can be adopted by other countries (similar to Bangladesh) as a tool of poverty alleviation.