ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED FINANCIAL INSTITUTIONS FOR PROMOTING FINANCIAL INSTITUTIONS FOR PROMOTING FINANCIAL INSTITUTIONS FOR PROMOTING FINANCIAL INSTITUTIONS FOR PROMOTING AGRICULTURE IN BHUTAN AGRICULTURE IN BHUTAN AGRICULTURE IN BHUTAN AGRICULTURE IN BHUTAN Aditya Banerjee, Wahengbam Jotin Singh, Shad Ahmad Khan, Kavita Sharma IMPORTANCE OF MICROFINANCE IMPORTANCE OF MICROFINANCE IMPORTANCE OF MICROFINANCE IMPORTANCE OF MICROFINANCE Over 74 million microfinance borrowers worldwide in 2009, and - The total loan portfolio was about $38 billion USD. Agriculture is an important aspect of lives of people in Bhutan. Imports of Nu.286 million worth of vegetables, and Imports of Nu.286 million worth of vegetables, and Nu.1.1 billion worth of rice in 2011. Foreign currency amounting to Rs.4 billion in the year 2011 spent on food imports. Immediate need for improving its agricultural production and reduce dependence on imports BACKGROUND Made popular by the success of Grameen Bank in Bangladesh. 4 stages of development (worldwide) 28 percent of the total demands for microfinance services covered (Globally) by 2010. The World Bank estimated a microfinance requirement of USD 300 billion (2010) BACKGROUND: CHALLENGES OF MICROFINANCE Subsidized interest rates in some cases High Non performing assets Drastic fall in aid given to agriculture (only 35% of 1980’s levels by the 1990’s) Interest rates still high Commercial model of operations (Focus on high financial rewards)
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ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED … · SPECIALIZED FINANCIAL INSTITUTIONS IN BHUTAN (CONT.) Less than 20% of farmers had access to credit from financial institutions
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ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED ANALYSIS OF THE NEED AND ROLE OF SPECIALIZED
FINANCIAL INSTITUTIONS FOR PROMOTING FINANCIAL INSTITUTIONS FOR PROMOTING FINANCIAL INSTITUTIONS FOR PROMOTING FINANCIAL INSTITUTIONS FOR PROMOTING
AGRICULTURE IN BHUTANAGRICULTURE IN BHUTANAGRICULTURE IN BHUTANAGRICULTURE IN BHUTAN
Aditya Banerjee,
Wahengbam Jotin Singh,
Shad Ahmad Khan,
Kavita Sharma
IMPORTANCE OF MICROFINANCEIMPORTANCE OF MICROFINANCEIMPORTANCE OF MICROFINANCEIMPORTANCE OF MICROFINANCE
� Over 74 million microfinance borrowers worldwide in 2009, and
- The total loan portfolio was about $38 billion USD.
� Agriculture is an important aspect of lives of people in Bhutan.
Imports of Nu.286 million worth of vegetables, and � Imports of Nu.286 million worth of vegetables, and Nu.1.1 billion worth of rice in 2011.
� Foreign currency amounting to Rs.4 billion in the year 2011 spent on food imports.
� Immediate need for improving its agricultural production and reduce dependence on imports
BACKGROUND
� Made popular by the success of Grameen Bank in Bangladesh.
� 4 stages of development (worldwide)
� 28 percent of the total demands for microfinance services covered (Globally) by 2010.
� The World Bank estimated a microfinance requirement of USD 300 billion (2010)
BACKGROUND: CHALLENGES OF
MICROFINANCE
� Subsidized interest rates in some cases
� High Non performing assets
� Drastic fall in aid given to agriculture (only
35% of 1980’s levels by the 1990’s)35% of 1980’s levels by the 1990’s)
� Interest rates still high
� Commercial model of operations (Focus on
high financial rewards)
RESEARCH METHODOLOGY
� Scope of study: Scope of study: Scope of study: Scope of study: To find out the current situation of specialized institutions catering to the agriculture sector in Bhutan, and evaluate its future prospects.
� Objectives of Study:Objectives of Study:Objectives of Study:Objectives of Study:
- To understand the challenges and opportunities that specialized financial institutions catering to the To understand the challenges and opportunities that specialized financial institutions catering to the agriculture sector have.
- To evaluate the state of agricultural microfinance in Bhutan.
- To suggest methods that might be useful in further development of such specialized financial institutions.
� Research Design: Research Design: Research Design: Research Design: Descriptive research
RESEARCH METHODOLOGY (CONT.)
� Data Sources:Data Sources:Data Sources:Data Sources: Secondary data collected from various electronic sources such as websites, articles and newspaper journals available online, etc.
� Geographical extend of the study:Geographical extend of the study:Geographical extend of the study:Geographical extend of the study: The Territorial boundaries of Bhutan.Geographical extend of the study:Geographical extend of the study:Geographical extend of the study:Geographical extend of the study: The Territorial boundaries of Bhutan.