Can Private Sector Commercial Banks Play a Significant Role in Microfinance

This presentation attempts to explore how private capital can play a positive role in driving growth. Private commercial banks can play a significant role in enhancing:

• Capacity building;
• Liquidity;
• Retailing of services.

The paper also discusses questions, such as 'Is microfinance a valuable proposition for private sector?' It further highlights some of challenges faced and lessons learnt with regards to private capital investment in microfinance.The presentation discusses Khushhali Bank's experience in leveraging international best practices to enable private sector MFIs in Pakistan. As an institution, the presentation states some of the Bank's:

• Strategies:
  • Enhance accessibility;
  • Raise awareness;
  • Forge relationships.
• Challenges:
  • Meet high microfinance demand;
  • Mobilize resources to support expansion;
  • Achieve portfolio stability for new MFIs;
  • Maintain cost effective distribution systems;
  • Sustain stakeholder's expectations and market regulations.
• Status update;
• Sustainability timeline.

The presentation ends by stating the way forward where small loans, savings and other financial instruments are available to all types of people irrespective of their economic status and background.