FINANCIAL AND SOCIAL PERFORMANCES OF NEPALESE MICROFINANCE INSTITUTIONS

The inclusive financial system helps to promote socioeconomic development of the nation. A well-developed financial institution promotes the level of capital formation and encourages investment by identifying and financing productive business opportunities. Microfinance (MF) is a tool of financial i...

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Bibliographic Details
Published in:Cost management 2014-05, Vol.28 (3), p.40
Main Author: Dhungana, Bharat Ram
Format: Magazinearticle
Language:English
Subjects:
Banking
Bans
Economic development
Financial performance
Low income groups
Microfinance
Rural areas
Studies
Sustainability
Online Access:Get full text
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Summary:The inclusive financial system helps to promote socioeconomic development of the nation. A well-developed financial institution promotes the level of capital formation and encourages investment by identifying and financing productive business opportunities. Microfinance (MF) is a tool of financial inclusion that facilitates the development of an inclusive financial market by providing a group-based lending system to the ultra-poor and disadvantaged people, especially those of the rural community. The basic aim of MF is to transform the socioeconomic status of the poor and marginalized people through its services. The success or failure of microfinance institutions (MFI) largely depends upon their effectiveness outreach and performance. The main objective of this article is to assess the financial and social performance of Nepalese MFIs is a major phenomenon in terms of sustainability and breadth of outreach. Empirical findings of this study will act as a guiding instrument to the policymakers of developing countries like Nepal.