A COMPARATIVE STUDY OF MICRO-FINANCE IN NEPAL AND BANGLADESH

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1 A COMPARATIVE STUDY OF MICRO-FINANCE IN NEPAL AND BANGLADESH *Dr.Puspa Raj Sharma Chairman, Management Research Committee P.N. Campus, Pokhara Program Co-ordinator, BBA, JMC The article mainly on comparison between micro-finance-gb Model practices in Nepal and Bangladesh. It includes the observations, general overview of micro-finance in Bangladesh and Nepal, comparison of the key indicators of micro-finance services, major micro-finance strategy in Bangladesh, and lessons from Bangladesh. The overall productivity of Nepalese MFI seems poor as compare to Bangladesh. The paper includes some recommendations for the improvement of micro-finance in Nepal. 1. Introduction Micro-finance is relatively a new innovation in the age-old banking industry. With the untiring efforts of micro-finance practitioner specially by Muhammad Yunus (Winner of Nobel peace prize-2006) for over 30 years in developing country. Micro-finance has received a global recognition today not only as a powerful instrument for poverty reduction and empowerment of women, but also as a promising sector of financing for the banks, financial organizations and NGOs. Countries with sound Micro-finance system have succeeded in reducing poverty and improving socio-economic conditions of women significantly. MDG calls for reducing world poverty in all its forms by the year 2015 with significant improvement in education, gender equality, health care and overcoming hunger and environmental degradation through microfinance intervention(npc, 2003). In the process of observations the researcher visited Grameen Bank (rural branch, center meeting, group and individual) and interacted and received valuable insight about the World famous Grameen Bank with innovator Prof. Muhammad Yunus since most of Nepalese MFIs were adopting Grameen Model of micro-finance. Besides this the researcher also visited and interacted with BRAC,ASA, and PKSF organizations and their top authorities. 2. An Overview of Micro-finance in Nepal and Bangladesh Nepal and Bangladesh are countries in South Asia that share borders with India. Bangladesh is much larger than Nepal in terms of population and the population of Bangladesh is estimated 160 million and the total area occupied is square kilometer. It has one of the largest population densities in the world over 867 people per square kilometer. The contribution of agriculture sector in the GDP of Bangladesh is 34.5 percent. Eighty percent of the population live in rural areas and the current population growth rate is 1.67 percent (WB, 2005). The population of Nepal is about 26 million and its total area is 147,181 square kilometers. The economy of both Nepal and Bangladesh is characterized by the predominance of the agricultural sector. About 40 percent of GDP and 80 percent of total population are employed 232

2 by the agriculture sector in Nepal. In both countries, women working in agriculture account for a large majority. Moreover, in both countries the role of women is given lessor importance due to the prevalence of patriarchal system. Despite these similarities, intervention of micro-finance program on the status of poor and women have different priorities. Bangladesh is considered as the pioneer in the world for applying and achieving successful results. The fact that the micro-finance industry has been able to provide access to credit, currently to nearly thirteen million poor households in Bangladesh is truly remarkable. There are around twelve hundred micro-finance institutions (MFIs) in Bangladesh (ADB, 2002) alone but the industry is dominated by four large MFIs (BRAC, Grameen, ASA and Proshika) that serve around 11.4 million or ninety percent of all clients. These four institutions combined have over $800 million in outstanding loans and around $380 million in savings. The differences between the number of borrowers and members reflect differences in the variety of services offered by these MFIs. Proshika and BRAC offer a range of services to their members, while Grameen and ASA focus on the provision of micro-finance services. Table :1 Micro-finance Portfolios of the Big Four MFIs in Bangladesh ( As of June 2004) Organization Number of Members Numbers of Borrowers Member s Savings Cumulative Disbursement Million Million US $ Grameen Bank BRAC ASA Proshika Outstanding Loan Amount Total Source: PKSF 2004 Note: Exchange rate in June 2004: US$1 = Tk60.36 After the big four the next largest NGO has 0.7 million clients, and there are only ten NGOs who have more than 100,000 borrowers. The bottom line is that the majority of the MFIs are small (less than five thousand borrowers) and that the bulk of access to micro-credit is provided by the four large MFIs. In this backdrop, some performance highlights of Grameen Bank Bangladesh are as following: Table:2 Performance of Grameen Bank Bangladesh ( November,2004) No of center Number of groups Number of Member 39,58,319 Number of borrowers 35,62,487 Outstanding loan amount ($295M) Outstanding savings ($194.1M ) million taka million taka Total number of staffs

3 Number of branch 1326 Number of village covered Exchange rate: taka=$1 A case study of Grameen bank, Branch Bangladesh (where the researcher observed) Table 3 Grameen Bank -Vowel Rajabari Sreepur Branch Dhaka Zone -At a Glance S.N Particulars 2004, January o. 1 Opening date of the branch Name of the branch manager (see photo in annex) Dewan Md. Jahangir alam 3. Number of staffs 9 4. Number of centers Number of groups Number of members Number of village Cumulative amount of loan disbursed Million 9. Cumulative amount of loan repaid Million 10. Outstanding loan Basic loan Flexible loan 0.06 Housing loan 3.30 Other loan 0.53 Total loan million 11 Rate of recovery (%) Microenterprises loan (Cumulative) 12.1 Number of micro-enterprises loanee Amount disbursed 10.18million 12.3 Amount repaid 3.97 million 13. Balance of savings 13.1 member deposit non-member deposit Total million 14. Number of village loan Number of house built with housing laon Higher education loan 24 (Female student 5, male student 19) 17. Scholarship 21 Scholarship recipients (female) 13 Scholarship recipient (male) Number of struggle loanee 5 19 Number of staff Field staff Cost per unit of money lent Average loan size (taka) Average saving amount Active clients per loan officer

4 25. Average loan per officer (taka) 59 lakh 26. Dropout 6% 27. Salary structure and post Branch manager salary (21 years ) taka 9925 Bracnh officer (17 years ) taka 6792 Senior cente manger(8 years) taka 5024 Centre manager (2 years) taka 3924 In Nepal, the status of MFI is limited and small in comparison to Bangladesh. Micro-finance programs have grown rapidly in Nepal during the last decade. Though the program of microfinance for the poor was first initiated in 1950s through cooperatives and continued in various forms such as SFDP, PCRW, MCPW, etc., but the operation of micro-finance in its true sense was started with the establishment Grameen Bikas Bank in Prior to adoption of liberal financial policies starting from 1991 and intensified in later years, micro finance program was exclusively under the government control. However, with the initiation of liberal policies after 1991, the private sector and NGOs have also been involved in micro-finance programs following Bangladesh Grameen model. Micro-finance programs are implemented by government, semi-government and non-government financial institutions such as commercial banks, Grameen Banks, micro-finance development banks, NGOs and savings and Credit Cooperatives and others. There are 5 regional Grameen Bikas Banks one each in five development regions in the government sector, 4 micro credit development banks in the private /NGO sector, 143 small farmers cooperatives limited, 44 FINGOs and 34 savings and credit cooperatives (NRB, 2005). The following chart shows the various model of microfinance in Nepal Micro-finance programs that have evolved in Nepal over the years can be categorized into 6 groups: Co-operative Programs, Priority Sector Lending Program, Intensive Banking Program, Specific Target Group Programs, Grameen Bank Replication Programs, Micro-finance Development Banking. The existing outreaches of major micro-finance program are as below: 235

5 Table: 4 Outreach of Micro-finance in Nepal (Rs. 000) Particulars Total of GBB SB Bank Nirdan Chhimek Deprosc Total GBR Grand *total No. of center No. of Group No. of member No. of borrowers General loan disbursed Rs. General loan repaid Rs General loan outstanding Rs Other loan disbursed Rs Other loan repaid Rs Other loan outstanding Rs Total loan disbursed Rs Total loan repaid Rs Total lon outstanding Rs. Personal saving balance Rs. Group fund balance Rs. Group fund loan balance dis Rs. Group fund loan repaid Rs. Group fund loan

6 outstanding Rs. Staffs No. of Branch VDC covered Districts covered Source: NRB,2005 (Outreach of grameen model included only) Grameen Bikash Banks are in operation each one in all the development regions to provide credit without collateral for the deprived rural people especially women in-group for their income generation activities. About 301,939 families with 989,330 members (Directory of micro-finance Nepal, 2003) of Nepal directly benefited from the Micro-finance program including various models. The outreach status of Grameen Bikash Bank and Grameem Bank Replicators ( Nirdan, SBB, Deprosc, Chhimek ) are presented in the above table. Nepal Rural Credit review Report 1994, revealed that in 1991/92, only percent of rural household has borrowed. Of these borrowing households, percent had borrowed from informal sources such as landlords, merchants /traders, friends and relatives, percent from formal sources and 7.11 percent household borrowed from both the sources (ADB, 2003).Currently, in Nepal, less than 20 percent of the households have borrowed money from formal institutions, because of the present situation being particularly unfavorable for people living in the hills and mountains (Dhakal, 2004). There is a demand for small size loans supported by small savings which is coupled with high transactions costs, resulted in a concentration of financial institutions in urban areas and accessible regions of the country (Sharma, 2006). Micro-finance in Nepal does not focus on sustainability, it is rather conceived as a tool to provide social services and it is often reduced to a micro-credit component in broader projects and programs for social development (Dhakal, 2004). 3. Comparison of the Key Indicators There are several key indicators out of which depth and breadth are popular. Depth focus on how effectively the services are targeted to the poor to reduce the poverty and breadth focuses on what varieties of services are available to the clients to achieve financial self-sufficiency of the MFIs. Although all micro-finance practitioners agree that their goal is to improve the welfare of the poor, they do not agree how best to achieve this goal. That is why effort is made to show the difference in the school of thought through these depth and breadth approaches. One advocates for breadth with the emphasis on self-sustainability approach and the other advocates for depth with the emphasis on poverty/ welfariest approach. In this context, the sector of micro-finance is compared between Nepal and Bangladesh based on researcher observations and published literature in the field of micro-finance. 237

7 Table : 5 Comparison of the Key Indicators Differences Bangladesh Nepal Ownership of Grameen Bank Recovery rate Resource financed Status of deposits Profit status Salary cost Interest rate and types of loan. Deposit rates and its status. Micro enterprises loan provision. About 94 % of the total equity belongs to borrower and 6% only with the government The recovery rate is 99 percent as reported in financial statement. The GBB has 100 percent loan financed from own fund and savings. Deposits alone are occupied 99 per cent of the outstanding loans in GBB. Except 1983, 1991, 1992 all the year generating profit. These specific years were effected by the natural disasters. In GBB about 38 percent of the total expenditure represented as salary cost. There are four interest rate for loans from GB- 20% declining basis for income generating loans. 8% for housing loans. 5% students loan. 0% struggling members. IN GBB has offered minimum interest of 8.5 percent to 12 percent. Non- member deposit is also accepted There is no restriction on the loan size for fast moving member. Clients can take loan for power tiller, transport vehicle, river craft and others. Still majority of the ownership of 5 Grameen bank belongs to governments. The process of divestment has initiated recently. The total of major MFIs percent in average of GBB(NRB,2005). In Nepal, majorities of GB financed from equity fund of the government, loan from apex institutions, and commercial bank. In Nepal, GBs have less than 20 percent of the outstanding loan collected as a deposit In Nepal, 3 out of 5, GB are running at loss technically. Other GB replicator run by the private sector are performing better than government initiated program. In Nepal, GB has incurred more than 50 percent of the total expenditure hold by the salary cost. Only few options are available in GB, Nepal. The rate of interest is higher than in Bangladesh. Normally the Flat rate is 12-15% or 18-22% interest on diminishing loan balances. In GB Nepal, only 6 percent is offered in deposit and only member deposit is allowed to take. In GB Nepal there is restriction on loan size (Urban Rs.100, 000 and Rural Rs. 50, 000). This type loan can be taken only by providing acceptable collateral. 238

8 Scholarships programs. Network to support the services. Pension fund / insurnace/ loan paid off at Death Attractive staff package Five stars for achievements (Green, Blue, Violet, Brown, Red) Policy for opening new branches System of internal evaluations Scholarships are given to the children of Grameen members, with priority to girl children, every year, to encourage them to get better grades in school. Up to now, children at various level rewarded. Grameen network institutions are established without holding any share of GBB. Like Grameen phone, Grameen telcom, Grameen communications, Grameen cybernet, Grameen software, Grameen IT park. Grameen Information highways, Grameen Star Education, Grameen trust and others are established to support the need of the clients.. GB addressed through pension fund for old age borrower. The borrower find it very attractive. Similarly insurance and loan paid off at death program are also introduced. GB introduced its staff attractive package of services. One can retire after 10 years of services and found high level of motivations of the staffs. GB provides 5 colour coded stars to its branches on the basis of various evaluations (repayment rate, profit, self sufficiency, girl education, crossing poverty line). The system creates healthy competitions among the branches. New branches are allowed to borrow from the head office of the bank only during its first year, to undertake on-lending activities after the initial year the on-lending fund must come from its own deposit mobilization. A new branch is expected to break even within the first year of its operation. According to recent survey, percent of Grameen borrowers families have crossed the poverty line. No such type of program is introduced in Nepal. Few Grameen Replicators have realized the practices. In Nepal no such support institutions. There is lack of co-ordinations among the established institutions also. In Nepal no such pension fund program and limited services in the insurance and other field. The clients find it not so attractive. No such schemes are available in Nepal and found low motivations of the field staffs. They perceive their facility status is very low. No such systems of evaluations are prevailing. Weak reward and punishment system with nepotism and favoritism. In GBB, Nepal no such clear policy regarding branch establishments and time for break even analyses. The approach of opening the new branches seems supply driven rather than demand driven. Cost sensitivity is not a matter of concern. No practice of such internal assessment in Nepal. No detail profile of poor, who crossed the line of poverty. 239

9 Productivity of Grameen Bank Overall productivity of GB in Bangladesh is higher than in Nepal Per staff client serving is 307. Per staff outstanding loan million taka. Lower productivity is observed in Nepal than in Bangladesh. Per staff client serving is 174. Per staff outstanding loan Rs million Policy/legal basis Regulated MF providers and regulatory agency Loan loss provisions Leadership Donor client relationship Macroeconomic and regulatory environment Government s Interim Poverty Reduction Strategy Paper Micro-finance plays an important role in poverty reduction strategy. Under the Grameen Bank Ordinance of 1983, a special act to support micro-finance, NGOs register one or more acts of parliament or ordinances. Most NGOs have microfinance programs that are exempted from oversight by Bangladesh Bank (Central Bank) or other regulatory agencies. Grameen Bank worked as regulated providers and Bangladesh Bank work as regulatory agency. Unclassified 5%; substandard 5%; doubtful 5%; bad and loss 100% are in practices. Prof.Muhhamed Yunus is providing the leadership of whole microfinance sector through close watching by adopting trail and error approach. we can observe in Bangladesh a constructive donor client relationship The early experimentation and later scaling up of Micro-finance industry in Bangladesh is found with low inflation. NRB Act of 1955; Financial Intermediary Act of 1998; Comprehensive Bank and financial Act of 2004; ADB/N and other financial institutions like NIDC, under special charters. Cooperatives function under the cooperative act and require NRB license for savings mobilization. NGOs are registered under society registration act of 1978 and they required a financial license from NRB. Microfinance license from NRB under the financial intermediary Act of 1998; registration as Micro-finance Development Bank under the Development Bank Act of Commercial banks; Regional Rural Development Banks worked as a regulated providers and NRB as regulatory agency. 1% for good loan, 2% for inferior loan, 50%for doubtful debt, and 100% for bad loan are in practices. No dedicated leadership in the field of micro-finance. Most of decisions are taken on adhoc basis and personal interest of the political leaders. Such type of donor clients relationship in national level can not be found. Established GBB in each sector without any preparation by hiring staff first, which causes problems in operational and financial sustainability. 240

10 4. Micro-finance Strategies in Bangladesh In this section, the researcher likes to explore micro-finance strategy, which make the success history of micro-finance in Bangladesh. The followings are the strategies: (a) Institution Building Leadership, Staff Incentives The vision and stamina of the leaders of the NGO/MFI movements are a key factor behind the success of the micro-finance industry in Bangladesh. Leadership skills were instrumental at the initial stages in persuading a skeptical public that providing credit to the poor could become a viable and replicable proposition. These skills were equally important during the process of scaling-up. These included being able to recruit and motivate staff, decentralizing authority away from the center, building management information systems and internal controls as well as having the humility to learn from mistakes. Moreover, once the leaders of these organizations showed that scaling up is possible and this view became a part of the staff culture and other staff had the confidence to expand the programs within their own jurisdiction (Khandker, 2003). (b) A Constructive Donor-Client Relationship External resources played an important part in the experimentation process, which subsequent growth in outreach and institutional strengthening of the micro-finance industry. At the same time, the large micro-finance institutions have been successful in managing donors. NGOs, such as the Ford Foundation, Oxfam and the Aga Khan Foundation, played an important role at the initial stages of the NGO-MFI industry in Bangladesh. The subsequent expansion and consolidation stage was funded largely by official bilateral agencies (Yunus, 2003) and later by multilateral agencies. A large part of these donor investments went to the capitalization of MFIs loan funds, crucial to the rapid expansion that took place in the 1990s, as well as into developing institutional capacity through management information systems and human resource development. Finally, the 1990s have seen dependence on donor resources progressively declining for the large MFIs. (c) An Enabling Macroeconomic and Regulatory Environment The early experimentation and later scaling-up of the micro-finance industry in Bangladesh was helped by an appropriate enabling environment. Firstly the macro-economy has been, by and large, soundly managed and one should not underestimate the significance of this. The rate of inflation has been kept to single digits and economic growth over the past decade has averaged around 5 percent per annum, thereby creating economic opportunities for microcredit financed investments. (d) Population Density, Ethnic Homogeneity and Religious Patience Aside from the Chittagong Hill Tracts area, Bangladesh is ethnically a relatively homogenous country, with a high population density and good communication networks. Moreover, this largely homogenous market is also very large in absolute terms. The contrast with Nepal for instance is striking and the difference in micro-credit outreach between these two countries is partly due to these factors. It is also striking how in Pakistan, Afghanistan, Egypt and certain other Muslim countries, MFIs have found religion to be a factor that has led to a relatively 241

11 lower demand for micro-credit and MFIs that are more cautious about expanding (Zaman, 2004). In contrast, even conservative religious forces in Bangladesh have been largely tolerant of micro-finance activities and the greater economic empowerment and mobility of women. (e) A Professional Apex Body for Micro-finance The Palli Karma Sahayak Foundation (PKSF) was created in 1990 and is governed by a board composed of both public and private sector representatives. It is a public-private apex body that channels funds for micro-finance to MFIs has been critical in the expansion and improved professionalism of the microcredit industry in Bangladesh. PKSF s core functions include (i)lending money to MFIs which meet certain eligibility criteria to expand their micro-finance operations, (ii) capacity building and hands-on assistance to strengthen MFIs and move them toward financial sustainability, and (iii) advocacy on micro-finance issues and helping develop an appropriate regulatory framework for the industry. 5. Conclusions, Lessons from Bangladesh and Recommendations The observation and available literature study highlights some lessons from Bangladesh that may be relevant to micro-finance growth and impact in other countries including Nepal. The first lesson is the importance of an enabling environment for micro-finance. A critical part is maintaining a stable macro-economic environment with both interest rates and inflation kept at reasonable levels. The lack of macro-stability has seriously constrained the growth of micro-finance in several countries. The second lesson is that micro-finance may be a more effective remedy against poverty and vulnerability if it is complemented with other interventions. These interventions may be particularly appropriate for the poorest households that face the higher risks of income fluctuations and have the greatest need for a range of financial and non-financial services. In Nepal, lack of co-ordination of MFI with other line agencies and government agencies regarding skill development training, management development training, and other various non- financial aspects. The third lesson is that there is a role for donor financial assistance in expanding the capital base in emerging micro-finance institutions as well as in developing technical capacity that leads to organizational sustainability. Hence, subsidies can be justified to support infant micro-finance institutions as long as there is a viable route to institutional sustainability. The duration of these subsidies would vary according to 242

12 local conditions and level of poverty of the clients. In the name of financial self sufficiency, if we are not cooperating infant MFI, they can not recover the initial social cost, which ultimately can not address their services to the poor. So the role of donor should be worked as complement rather than competitor for the private MFI. The fourth lesson is that while visionary leadership cannot simply be franchised, the systems and formal rules that govern the successful micro-finance industry in Bangladesh to an extent can be replicated. In Nepalese MFI less consideration are found in this aspect in general and especially by the government initiated MFI. The role of the government should as enabler, not as a direct provider of micro-finance services. The fifth lesson from the Bangladesh experience is that the creation of a micro-finance wholesaler has the potential to play an important role in expanding access, developing professional standards and in advocating for MFI issues. In Nepalese context, the role of apex institution confined only to provide credit need of the MFI, without intensive investigation of the partner organization. The role should be broadening other institutional development like human resource development, capacity building, high level outreach and financial sustainability. Specially government run apex fund, should be optimized and utilized properly by looking their objectives for the period, it should not be confined only to lending and repayment rate. The issue of fund parking is raised by the partner organizations as a fault of wholesale lenders. The sixth lesson is that the bulk of the scaling up took place through four institutions (GB, BRAC, ASA, PROSIKA) that currently serve ninety percent of all micro-finance borrowers. Hence another lesson from the Bangladesh experience could be that it is not necessarily a sound strategy to support many different institutions, and risk spreading resources thinly, in order to reach large numbers of poor people. This is particularly important in light of the fact that there may not be adequate leadership skills and professional capacity available to up scale. In Nepalese perspective, lack of wide vision, foresighted leadership, corporate governance, and institutional development of MFI are the main challenges for the coming days. However, few privately run MFI performing better in comparison to government initiated MFI. The overall productivity of the Nepalese MFIs are poor in comparison to GB, 243

13 Bangladesh. The followings are the some observations to improve the micro-finance services more effectively. 1). To increase the outreach of existing MFIs, the government, INGO/ Donor agency should subsidize social costs of MFIs either on clients basis or on time basis until and unless they reach a level of operating self-sufficiency as these border mission is beyond the goals or capacity of the MFIs alone. The culture of long term subsidy should be discouraged and ultimately it should be directed towards financial selfsufficiency for their sustainability in the long run. 2) To create healthy competition among MFIs the problem of duplication among institutions should be avoided immediately. For this local co-ordination network of MFIs should be established by incorporating credit information of the new clients. 3) In order to increase clients serving capacity of the MFIs proper planning and implementation clarifying the authority and accountability of each branch and staffs should be prepared and monitored time to time effectively. 4) The motivation level of the field staff should be maintained at high level, they are the key scorers of the micro-finance game 5) To increase the enterpreneurship and business skill of the clients vocational and skill enhancement training should be emphasized, since credit without skills may not be sustainable in the future. For this there should be proper co-ordination with training delivery government and non-governmental institutions at national, regional and local level. Basic training at the beginning of the program should be intensive, it should not be used only for formality for taking credit. 6) Credit plus approach provides an effective and cost-effective model for creating sustainable enterprises among the poor, the ultra poor, and the severely socially excluded, so government and central bank should formulate the policy and program of credit plus approach of micro-finance specially for the deprived and hard core poor. 7) To minimize the vulnerability and risk of the client s micro insurance schemes and products should be designed by addressing the need of the clients. Awareness building program should be launched time to time regarding rules, terms, conditions and provisions of the services. 244

14 8) To strengthen the internal resources of the MFIs, saving schemes should be diversified. There should not be wide gap between saving interest rate and lending interest rate in the name of microfinance services. MFIs should be alert about the competitors and market rate of interest. The effort of MFIs should always be to minimize their transaction costs. 9) The existing outreach of MFIs is focused on terai and hilly urban areas rather than the mountain and rural hills. The government should design a special program with the provision of subsidies for meeting operational costs in order to motivate the MFI s to implement microfinance programs in the remoter mountain and hill areas. Besides, the MFIs should promote the local NGOs and Cooperatives to make them capable of carrying out micro-finance program in their areas. Such NGOs and Cooperatives would be more cost effective and locally oriented than the MFIs from outside. 10) The working procedure in the Grameen modality should be reviewed by interacting with the clients like weekly installment may be changed to fortnightly or monthly according to the need and desire of the clients 11) The cause of drop out should be analyzed properly and if the causes are within the control of MFIs, then it should take necessary action immediately. REFERENCES AND BIBLIOGRAPHY ADB (2005). Sri Lanka 2005 Post -Tsunami Recovery Program Preliminary Damage and Needs Assessment Colombo, Sri Lanka Gennaio. Asian Development Bank (2000). Rural Finance development in Nepal A medium-term strategy Agriculture and Social Sectors Department, and Agriculture and Rural Development Division. Kathmandu, March Asian Development Bank (2000). Finance for the Poor: Micro-finance Development Strategy Manila: ADB/M. Asian Development Bank (2003). Finance for the poor: Microfinance Development Strategy Manila: ADB/M Asian Development Bank (2005). The Role of Central Banks in Micro-finance in Asia and the Pacific. Vol.1, Overview Manila: ADB/M. CGAP (2001). Micro and Small Enterprises Finance Guiding Principles Supporting Intermediaries, CGAP, World Bank, Washington D.C. CGAP (2003). Anatomy of Micro-finance Deal: A New Approach to Investing in Microfinance Institutions Focus Note, World Bank, Washington D.C. Dhakal, N. H. (2000). A case study on Micro Life Insurance Scheme. CMF, December. 245

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16 Sharma, Puspa Raj (2007). Micro-finance and Women Empowerment. Journal of Managemetn and Development Review Vol.3 No.1 Issue 12, Central Department of Management, TU Nepal. Shrestha, S.M. (2005). Why Interest rate of MFI is high than the other commercial banks?. Micro-finance Bulletin, RMDC, Kathmandu The World Bank (2002). World Development Indicators. Published by Oxford Press for the World Bank The World Bank (1989). The Importance of Women in Development, Washington D.C. USA World Bank (1997). Nepal: Poverty at the Turn of the Twenty-First Century, An Interim Note on Poverty Assessment, Prepared by the Poverty Reduction and Economic Management Division, South Asia Region, Washington D.C., The World Bank. World Bank (2000). World Development Report 2000/2001, Attacking Poverty, New York : Oxford University Press. World Bank, (2002). World Development Report 2002/2003, Attacking Poverty New York: Oxford University Press 247