Microfinance Ngo Vs Banking

supervision agencies. And when covariant risk is high, as it is when group members are all from the same sector and necessarily from the same community or locality, the tenuousness of the NGO position is even more dangerous to the saver. Besides propriety and prudence, savings custodianship necessitates statutory provisioning and creation of reserves to cover liquidity and other risks.
Credit MinimalismWhile ‘savings only’ is a limited disaster story, the other side of the tale relates to NGOs who are employing ‘credit first’ or minimalist credit principles. When savings form part of the basis for credit in a financial institution, that institution does not have to take a