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BNK 208

Microfinance Management

TU BBA · Semester 8 · BBA curriculum effective from 2021

Requirement
elective
Credits
3
Syllabus
3 sections

Syllabus

What this course covers and how the teaching time is divided.

course syllabus loaded.

Microfinance Management Syllabus

Official TU PDF (pp. 8,9,10)

Tribhuvan University

Faculty of Management

Office of the Dean

Bachelor of Business Administration (BBA)

Course Title: Microfinance Management

Course Code: BNK 208

Semester: Semester 8

Nature of Course: elective

Full Marks: 100

Pass Marks: 50

Credit Hours: 3 Cr.

Curriculum: BBA curriculum effective from 2021

Course Objective

:

This course provides an overview of microfinance and its significance in poverty reduction and economic development. It covers the history and evolution of microfinance, different types of microfinance institutions, and their role in providing financial services to the poor. The main purpose of this course is to acquaint students with the role and significance of microfinance in the development of a developing country like Nepal. Besides, it also provides the products and services and functions of microfinance institutions operating in Nepal.

Course Description

:

This course contains basic concepts of microfinance management, microfinance operations and models, microfinance products and services, risk management in microfinance, monitoring and evaluation of microfinance, microfinance policy, regulatory environment, and emerging issues in microfinance in Nepal

Course Contents:

Lecture hours show the approximate classroom time allocated to each unit.

Unit 1.Basic Concept of Microfinance Management

6 hours
  • Defining Microfinance
  • Differences of Microcredit and Microfinance
  • Characteristics of Microfinance
  • Evolution of Microfinance: National and International Context
  • Perspectives and Approaches to Poverty
  • Microfinance and Social Entrepreneurship: Concept of Social Enterprise, differences of social enterprises and business enterprises
  • differences in Microfinance and Informal Financing
  • Differences in Microfinance and traditional banking
  • Microfinance management and its principles.

Unit 2.Microfinance Operations and Models

5 hours
  • Approaches to Microfinance: Welfare approach and Institutional approach
  • Model of Microfinance: Grameen Replication, Cooperative, FINGO, Self Help Groups [SHG], Target group program, wholesale lending MFIs, and others
  • purposes and functions of different models in Nepal
  • Grameen model’s features, process, and their strengths and weaknesses. Concept of group lending and peer pressure
  • Adverse selection, moral hazard problem, and other problems in microfinance.

Unit 3.Microfinance Product and Services

7 hours
  • Concept and nature of micro-finance products and services
  • Types of Microfinance products – micro credits, micro savings, micro insurance, pension and provident fund, and payment transfers
  • Types of Microfinance services: financial intermediations, social intermediations, and social services
  • Delivery of products and services
  • Product development in Microfinance –process, pricing products of microfinance

Unit 4.Risk Management in Microfinance

6 hours
  • Concept and nature of micro-finance risks, Risks in MFIs – functional, financial and external risks
  • Functional risks – mission drift, staff fraud, inefficient performance, inefficient tracking system of loans, overdependence on donors and staff turnover
  • Financial risks – interest rate risk and foreign exchange risk
  • External risks – calamities, market speculation, market competition, theft and government policies
  • Strategies for risks minimization – securitization, controlling internal frauds, developing effective MIS, efficient human resource management, disaster risk management, developing secured cash transportation, disbursal and collection system and hedging

Unit 5.Monitoring and Evaluation in MicrofinanceManagement

7 hours
  • Overview of impact assessment: Household, individual, and enterprise level
  • Financial performance analysis: PEARLS and CGAP models
  • Social performance: Universal Standard of Social Performance. Status of Nepalese Microfinance.

Unit 6.Regulatory Environment for Microfinance Management

6 hours
  • National Microfinance Policy
  • MF regulatory authority and institutions – Nepal Rastra Bank (NRB), Department of Cooperatives (DoC)
  • Laws and regulations – Nepal Rastra Bank Act, Bank and Financial Institutions Act, Cooperative Societies Act, Financial Intermediaries Act, NRB Directives for MFIs.

Unit 7.Microfinance in Nepal

6 hours
  • Present status of different models of microfinance in Nepal: facts and figures
  • sustainability of MFIs
  • role of microfinance in women empowerment
  • deprived sector lending
  • contribution of microfinance in the overall development, and their problems and challenges.

Unit 8.Emerging issues in Microfinance

5 hours
  • Crises in Microfinance
  • Governance of MFIs
  • Digitalization in microfinance
  • Funding Issues in Microfinance
  • Microfinance for climate change
  • Financial Inclusion
  • Client protection and financial literacy Suggested Readings:              Baral, S. K., & Bihari, S. C. (n.d.). Rural marketing and microfinance: Text and cases. New Delhi: A.I.T.B.S. Publishers, India. Ledgerwood, J. (n.d.). The new microfinance handbook: A financial market system perspective. Washington, DC: The World Bank. Mishra, P. K. (n.d.). Microfinance management. Bhubaneswar: Cengage. Shah, R. K. (n.d.). Microfinance in Nepal. New Delhi: Serials Publications. Sharma, P. R. (n.d.). Impact of microfinance on women empowerment. Pokhara: TOLI. Sharma, P. R. (n.d.). Sustainability of microfinance institution: Opinion survey. Pokhara: TOLI. Shrestha, S. M. (n.d.). State of microfinance in Nepal. Dhaka: Institute of Microfinance. The Banking with the Poor Network. (n.d.). Microfinance Industry Report Nepal. Singapore: BWTP. 