Does Microcredit Create Over-indebtedness?

In the context of the present crisis of microfinance, it is quite common to use the term over-indebtedness among the poor. Coming up with a precise definition of over-indebtedness for research or regulatory purposes is surprisingly a complex challenge. Few of researchers took attempt to define and measure over-indebtedness among microfinance borrowers. Among them Maurer and Pytkowska (2010); Spannuth & Pytkowska (2011) and Schicks (2011) are notable. But their definition and measurement process of over-indebtedness are not unique. Maurer and Pytkowska showed that by taking microcredit, 17% borrowers are over-indebted and 11% borrowers are at risk of becoming over-indebted in Bosnia and Herzegovina. Spannuth & Pytkowska demonstrated that 7% borrowers are insolvent, 4% borrowers are in critical position and 14% are at risk of becoming over-indebted in Kosovo. Schicks displayed that 30% borrowers are over-indebted in Ghana. The endeavor of this paper is to show the real fact whether microcredit creates over-indebtedness among its borrowers or not

Microfinance institutions will be an important instrument to earn more remittance, send remittance and utilize remittance in Bangladesh

Remittance is called the life blood of Bangladesh economy. In Bangladesh it contributes much in reducing poverty. In a study of Institute of Microfinance led by Professor S.R. Osmani, we have seen that 4 % poverty of Bangladesh solely reduced by foreign remittance. Microcredit is another important tool in reducing poverty. In the same study, we have seen that microcredit solely reduced 4% poverty in Bangladesh. In Bangladesh microcredit will be an important tool in earning remittance. Microfinance Institutions in Bangladesh can play its role in two stages – a) pre-stage and b) post stage. In pre stage MFIs can work as an important source of money for migration and MFIs can also trained migrant worker according to their importers’ demand which helps workers to improve their efficiency. This helps Bangladesh to earn more remittance which helps in reducing poverty. In post stages MFIs can help migrant worker to send money and also work for proper utilization of this remitted money. This helps to create entrepreneurs which help to create employment, which help to reduce poverty in Bangladesh. This whole process is discussed in this paper elaborately.Bangladesh, Microfinance Institutions, Microcredit, International Migration, Migrant Workers, Remittances, Development

Microfinance institutions will be an important instrument to earn more remittance, send remittance and utilize remittance in Bangladesh

Remittance is called the life blood of Bangladesh economy. In Bangladesh it contributes much in reducing poverty. In a study of Institute of Microfinance led by Professor S.R. Osmani, we have seen that 4 % poverty of Bangladesh solely reduced by foreign remittance. Microcredit is another important tool in reducing poverty. In the same study, we have seen that microcredit solely reduced 4% poverty in Bangladesh. In Bangladesh microcredit will be an important tool in earning remittance. Microfinance Institutions in Bangladesh can play its role in two stages – a) pre-stage and b) post stage. In pre stage MFIs can work as an important source of money for migration and MFIs can also trained migrant worker according to their importers’ demand which helps workers to improve their efficiency. This helps Bangladesh to earn more remittance which helps in reducing poverty. In post stages MFIs can help migrant worker to send money and also work for proper utilization of this remitted money. This helps to create entrepreneurs which help to create employment, which help to reduce poverty in Bangladesh. This whole process is discussed in this paper elaborately

Employee Turnover in MFIs: Reasons & Remedies

At present day’s employee turnover is one of the challenging issues in microfinance sector of Bangladesh. Excessive turnover is not only pricey, but it can create a bad reputation in the MFI sector and among the job seekers. Excessive turnover may be harmful to an MFI's productivity if experienced and efficient employees are often departing and the employee encompasses a high percentage of beginners. The impact of turnover has received substantial attention by the senior management and human resources professionals of the sector. So it is time demand to know the reasons those influence employee turnover and also know the remedies how we can reduce the rate of employee turnover rate. So an attempt was taken by this study to know the reasons and remedies of employee turnover in microfinance sector of Bangladesh. The study found that the average turnover rate of permanent employees in nine reputed MFIs in 2012, 2013 and 2014 were respectively 13.79%, 12.74% and 10.96% and the average turnover rate of contractual employees in seven MFIs in 2012, 2013 and 2014 were respectively 25.43%, 21.92% and 15.93%. The major reasons for employee turnover are: salary and other financial benefit are comparatively less than other MFIs; terminated for corruption or fraudulent; terminated for violation of service rules; no overtime financial benefit; excessive working load; transfer to distant district from home district; for family reason; not having promotion after being deserve it etc. The key remedies for reducing employee turnover are: should fix up a competitive salary and other financial benefit harmonizing with the other competitor MFIs; promotion and salary increment policy should be transparent; should have provision of proper reward for good work and proper punishment for ill work in MFIs; should have financial benefit for overtime work; having automation and online network facilities in all branches; to provide necessary job related training to a new recruited employee; having facility of leave encashment; having provision of financial support or loan for employee at the time of his emergency, transfer to nearest district from home district etc

Microfinance institutions will be an important instrument to earn more remittance, send remittance and utilize remittance in Bangladesh

Remittance is called the life blood of Bangladesh economy. In Bangladesh it contributes much in reducing poverty. In a study of Institute of Microfinance led by Professor S.R. Osmani, we have seen that 4 % poverty of Bangladesh solely reduced by foreign remittance. Microcredit is another important tool in reducing poverty. In the same study, we have seen that microcredit solely reduced 4% poverty in Bangladesh. In Bangladesh microcredit will be an important tool in earning remittance. Microfinance Institutions in Bangladesh can play its role in two stages – a) pre-stage and b) post stage. In pre stage MFIs can work as an important source of money for migration and MFIs can also trained migrant worker according to their importers’ demand which helps workers to improve their efficiency. This helps Bangladesh to earn more remittance which helps in reducing poverty. In post stages MFIs can help migrant worker to send money and also work for proper utilization of this remitted money. This helps to create entrepreneurs which help to create employment, which help to reduce poverty in Bangladesh. This whole process is discussed in this paper elaborately

Employee Turnover in MFIs: Reasons & Remedies

At present day’s employee turnover is one of the challenging issues in microfinance sector of Bangladesh. Excessive turnover is not only pricey, but it can create a bad reputation in the MFI sector and among the job seekers. Excessive turnover may be harmful to an MFI's productivity if experienced and efficient employees are often departing and the employee encompasses a high percentage of beginners. The impact of turnover has received substantial attention by the senior management and human resources professionals of the sector. So it is time demand to know the reasons those influence employee turnover and also know the remedies how we can reduce the rate of employee turnover rate. So an attempt was taken by this study to know the reasons and remedies of employee turnover in microfinance sector of Bangladesh. The study found that the average turnover rate of permanent employees in nine reputed MFIs in 2012, 2013 and 2014 were respectively 13.79%, 12.74% and 10.96% and the average turnover rate of contractual employees in seven MFIs in 2012, 2013 and 2014 were respectively 25.43%, 21.92% and 15.93%. The major reasons for employee turnover are: salary and other financial benefit are comparatively less than other MFIs; terminated for corruption or fraudulent; terminated for violation of service rules; no overtime financial benefit; excessive working load; transfer to distant district from home district; for family reason; not having promotion after being deserve it etc. The key remedies for reducing employee turnover are: should fix up a competitive salary and other financial benefit harmonizing with the other competitor MFIs; promotion and salary increment policy should be transparent; should have provision of proper reward for good work and proper punishment for ill work in MFIs; should have financial benefit for overtime work; having automation and online network facilities in all branches; to provide necessary job related training to a new recruited employee; having facility of leave encashment; having provision of financial support or loan for employee at the time of his emergency, transfer to nearest district from home district etc

Does Microcredit Create Over-indebtedness?

In the context of the present crisis of microfinance, it is quite common to use the term over-indebtedness among the poor. Coming up with a precise definition of over-indebtedness for research or regulatory purposes is surprisingly a complex challenge. Few of researchers took attempt to define and measure over-indebtedness among microfinance borrowers. Among them Maurer and Pytkowska (2010); Spannuth & Pytkowska (2011) and Schicks (2011) are notable. But their definition and measurement process of over-indebtedness are not unique. Maurer and Pytkowska showed that by taking microcredit, 17% borrowers are over-indebted and 11% borrowers are at risk of becoming over-indebted in Bosnia and Herzegovina. Spannuth & Pytkowska demonstrated that 7% borrowers are insolvent, 4% borrowers are in critical position and 14% are at risk of becoming over-indebted in Kosovo. Schicks displayed that 30% borrowers are over-indebted in Ghana. The endeavor of this paper is to show the real fact whether microcredit creates over-indebtedness among its borrowers or not