Reinhard H. Schmidt, Hans Dieter Seibel, and Paul Thomes

Transcription

1 Reinhard H. Schmidt, Hans Dieter Seibel, and Paul Thomes From Microfinance to Inclusive Banking Why Local Banking Works Edited by Sparkassenstiftung für internationale Kooperation WlLEY WILEY-VCH Verlag GmbH & Co. KGaA

2 V List of Abbreviations IX List of Flgures» XIII List of Snapshots * * * XV List of Tables* XVII Forsword XIX Preface * XXI I. INTRODUCTION: REFLECTIONS ON MICROFINANCE 1 Microfinance - banks - savings and cooperative banks *3 1.1 Microfinance: From humble beginnings to hype and disenchantment Banks as providers of microfinance services The relevance of savings banks and cooperative banks Conclusions and consequences 10 2 Basic definitions * Why precise definitions are desirable but difficult to provide Terms that need to be defined 14 3 The broader context of social and development-oriented banking How new forms of financial institutions emerge and survive The role of the State and other "third parties" The art of financial Institution building The objectives of socially-oriented, inclusive financial institutions 31 4 Does history matter? 35 5 Our main propositions» 39 II. GERMAN SAVINGS BANKS AND CREDIT COOPERATIVES - A BLUEPRINT FOR INCLUSIVE FINANCE? 1 Objectives - Why a historical perspective? Why credit cooperatives and savings banks? Why Germany? 43 2 Saving and borrowing - A socioeconomic historical approach Satisfying needs - A vital challenge Saving and borrowing - An everyday exercise Winds of change - Pawnshops, widows' and orphans' funds, and savings and loan societies as innovative inclusive Instruments of change management Savings as a fundamental condition for change and growth 56

3 VI 3 "Out of the box" - An international comparative survey of 19 th Century savings-based microfinance trends 59 4 The emergence of the German savings bank model - Inclusion from the beginning»» Divergence and convergence - Comparing the early savings banks Diffusion in the wake of early industrialization and growing incomes The Prussian Savings Bank Regulations of A legal template for future development Urgent need for profound change - Towards the economic takeoff The savings business around Cradle-to-grave incentives The credit business - A fluctuating and attractive combination of microfinance features Debit and credit - Reserves and non-profit appropriation Administrative and organizational success factors - Supervision, skill enhancement, and networks Gase study - The Aachen Association for Promoting Industriousness [Der Aachener Verein zur Beförderung der Arbeitsamkeitf. A holistic local inclusion approach * "Money and Intellect" - An integrated welfare concept combining insurance, savings, and education The savings bank of the Aachen Association - A successful experiment The end - The disastrous consequences of World War I Evaluation - The holistic concept as a role model? "Out of the box" - An international comparative survey of 19 th -century credit-based microfinance trends *131 7 The emergence of the German credit cooperative model - Tradition meets Innovation The liberal approach - Schulze-Delitzsch and his "Volksbanks" (People's Banks) The Christian charity approach - Raiffeisen and his fight against rural usury Dispute over principles - Jockeying for position and an optimization process Wilhelm Haas and other agents of change - Salt in the soup? Gase study - The Hachenburg Credit Cooperative [Vorschussverein Hachenburg] Volksbanks and Raiffeisen cooperatives - A remarkable success story 158

4 VII 8 Savings banks, credit cooperatives, and commercial banks - Complementarity versus rivalry Summary, conclusions, and outlook - Are there lessons to be iearned from the Histoiy Lab? Organizational findings Practical findings Connecting past and future Overview - Constitutive Clements of local banking in Germany: From microfinance to inclusive banking 177 III. GLOBAL DEVELOPMENT AND CURRENT STATUS OF MICROFINANCE PRACTICE 1 An overview of institutions, concepts, and approaches The spectrum of microfinance institutions A typology of microfinance institutions Informal microfinance Community-based microfinance, or village "banks" Cooperative microfinance: What role for government? Microfinance banks Sources of data on access to finance Seif-reporting by individual institutions Global reporting by networks of financial institutions Global data sets Market Saturation Microfinance as a field of international aid and Cooperation Early forms of development finance and the emergence of microfinance The turn towards modern microfinance Strategies for creating efficient and sustainable microfinance institutions Commercial microfinance and its challenges Why microfinance is losing its clout 314 IV. LOCAL FINANCIAL INSTITUTIONS - LEARNING FROM THE HISTORY OF SAVINGS BANKS AND COOPERATIVE BANKS FOR DEVELOPMENT POLICY TODAY 1 Summing up the historical survey The general relevance of the historical survey for the design of development projects 325

5 VIII 3 The direct relevance of the historical survey for the design of development projects A concluding comparative remark and a plea for diversity of banking structures Summing up: Insights and recommendations for national and international decision makers based on 200 years of inclusive microfinance and local banking history 343 References 347