1st Edition

Banking and Microfinance Institution Partnerships A Comparative Analysis of Cambodia and Australia

By Don Chandima Padmaperuma Copyright 2023
    248 Pages 10 B/W Illustrations
    by Routledge

    This book examines partnerships between commercial banks and microfinance institutions (MFIs). It demonstrates that when set up properly, these partnerships have the potential to develop and enhance the financial inclusion agenda, and further support sustainable development.

    MFIs provide access to finance predominantly for those who are poor but economically active, and therefore their expansion is imperative for inclusive economic development. However, MFIs are faced with enormous challenges. The book discusses how partnering with a commercial bank can meet these challenges and the process of interaction contributing to the enhancement of institutional robustness of MFIs. Through two distinct case studies, in Cambodia and Australia, the book discusses the motivations, objectives, and operational dynamics of a partnership, as well as the challenges, success factors, and potential benefits, from the increase in outreach and sustainability, to the transference of knowledge and potential for capacity building. Similarly, the partnering banks benefit in line with the intended objectives – commercial or social besides help embedding social consciousness and improving staff engagement.

    Concluding with elucidating the characteristics of a partnership model that can succeed across different global contexts, the book will interest a range of researchers and students across development economics, banking, finance, and sustainable development.

    1. Introduction  2. Microfinance, banking sector, and partnerships: a broad overview  3. Partnership dynamics from a developing country context: a case study in Cambodia  4. Partnership dynamics from a developed country context: Case study in Australia  5. Challenges in partnerships between MFIs and banks  6. Strategies in forming and maintaining partnerships: success factors  7. Benefits in partnerships between MFIs and banks  8. Comparative analysis of case studies from developing and developed countries  9. Conclusion

    Biography

    Don Chandima Padmaperuma completed his PhD at the University of Melbourne, Australia, and is now working as an operations manager at a leading bank in Australia. He has over 20 years of experience in the financial sector, including development and commercial banking in Sri Lanka and Australia.