From financial repression to microcredit

Vol. 21 No. 4 (2001)

Oct-Dec / 2001
Published October 1, 2001
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Nitsch, Manfred, and Carlos A. Santos. 2001. “From Financial Repression to Microcredit”. Brazilian Journal of Political Economy 21 (4):786-97. https://doi.org/10.1590/0101-31572001-1232.

From financial repression to microcredit

Manfred Nitsch
Professor de Economia Política da América Latina na Freie Universität Berlin, Germany.
Carlos A. Santos
Doutorando em Ciências Econômicas na Freie Universität Berlin, Germany.
Brazilian Journal of Political Economy, Vol. 21 No. 4 (2001), Oct-Dec / 2001, Pages 786-797

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.


Keywords: Financial system microcredit institutional building