Microbanking

English: Member nations of the Asia-Pacific Ec...
English: Member nations of the Asia-Pacific Economic Cooperation. Countries depicted are Australia, Brunei, Canada, Indonesia, Japan, Republic of Korea (South), Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, Republic of China (Taiwan), Hong Kong, People’s Republic of China, Mexico, Papua New Guinea, Chile, Peru, Russian Federation and Vietnam. (Photo credit: Wikipedia)

The definition of microbanking have been given includes ‘low-income segments of the population’ among the clients of microbanks (Conroy, 2002. THE RELEVANCE OF MICROBANKING TO APEC).  In the APEC‘s developing member economies, ‘microfinance’ is a useful summary term to capture the variety of financial service mechanisms being developed to meet the needs of financially excluded households. ‘Microfinance’ (in its various manifestations) is the form of ‘microbanking’ most applicable in those economies.

Microbanking is a concept obviously applicable to developing country circumstances, but less obviously so in the depopulated farmlands of the Australian ‘outback’ or in blighted inner urban areas of the US. And what is described as ‘micro’ in the operations of the Vietnam Bank for the Poor differs enormously from the ‘microcredit’ operations of Women’s World Banking, Japan, an NGO working with female microentrepreneurs in the latter country. But in each of the cases mentioned, Vietnam and Japan, outback Australia and inner city Chicago, attempts are being made to develop alternative, non-conventional, financial service delivery mechanisms for households without access. (Conroy, 2002).

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