Hina Almas

New Topic:

TRADE-OFF BETWEEN TARGETING THE POOR AND FINANCIAL SUSTAINABILITY: A CASE OF NGOs, BANKS AND ISLAMIC MFIs IN PAKISTAN

By

Hina Almas

65-FE/MS(EF-2)F10

Proposed Supervisor

Dr. Ahmed Nawaz

The link between monetary policy and microfinance is very weak. It works through many diverse channels. It would be more suitable to look at impact of rate of interest on commercial loans, or at the bigger microfinance institutions -- this is a more directly relevant variable. Even better, one would look at determinants of microfinance -- if we did that, we would find that it is driven more by policy than by structural constraints like interest rates.

It is not suitable to study the impact of monetary policy on MF.

Old Topic: Monetary policy and provision of microfinance:

INTRODUCTION:

A Microfinance institution is an organization for the supply of loans, savings and other financial

services to the poor. MFI can operate as a nonprofit such as a non government organization

(NGO), credit cooperative , non bank financial institution (NBFI), or even a formal, regulated for

profit bank. MFI serve millions of clients through their numerous branches. In addition to loans

and savings, many MFIs provide education on business and financial issues and social services

focused on health and children.