Chapter 8: Microfinance Market in Bangladesh

This chapter gives an overview on the microfinance market in Bangladesh, often known as the hub of microfinance institutions (MFIs) in the globe. The development of microfinance is based on the principle of financial inclusion of the poor on one hand and the sustainability of the institute on the other hand. The outreach-sustainability trade off could successfully be achieved by proper targeting and better designing of the microfinance products. The positive impact of microcredit has been widely documented and it produced a momentum in the rural economy which could have been lost if there are no microcredit operations. This chapter explores the evolution and present status of the microfinance market in Bangladesh, supply and demand factors, opportunities for further research and innovations and policy recommendations.