Resource title

Attaining Outreach with Sustainability: A Case Study of a Private Microfinance Institution in Indonesia

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Resource description

Financial and economic deregulation in Indonesia since 1983 has encouraged the growth of microfinance institutions (MFIs). Combined with sustained economic growth, this has resulted in drastic reductions in poverty. The paper analyses the performance of Bank Shinta Daya, a private rural bank in Java, in terms of outreach to the poor AND NON-POOR, financial viability and sustainability, resource mobilisation, and sound (best) microfinance practices. Bank Shinta Daya combines individual and group-lending technologies. The experience indicates that the latter cover their costs and greatly increase the bank's outreach to the poor as a new market segment, but initially add little to the bank's overall profitability. The case study shows how viability and sustainability can be attained in banking with the poor and the NON-POOR to conclude that only financially viable institutions can SUSTAINABLY reach the poor in significant numbers.

Resource author

Hans Dieter Seibel

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/23677

Resource license

Adapt according to the presented license agreement and reference the original author.