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Why do commercial banks have little interest in helping the poor to build successful businesses in both develo

October 25, 2007

Why is it that the commercial banks have little interest in helping the poor to start businesses in developing countries and industrialized countries?

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8 Responses to “Why do commercial banks have little interest in helping the poor to build successful businesses in both develo”

  1. steve.c_50 on October 26th, 2007 5:00 am

    Banks do not have any interest in helping anyone but themselves. Their business is not helping people, it’s making money.

  2. sentrynox on October 26th, 2007 2:52 pm

    Because they will need to manage micro credits, which mean that they will pay people to manage little amount of money, that could not even cover the wages of the employee hired by the bank!
    So the poor need to gather in order to attract some funds big enough to worth the expenditure of the bank and allow some profits to be made.
    Of course, they are a new trend in south east Asia that do micro credit in a new way, but in this part of the world, wages level allow this to be done more efficiently, as they are not earning as much as in the developed world!

  3. SAgirl on October 28th, 2007 7:58 pm

    The right people suffer.
    The right color and know the right people you are the right people you are the right color and know the right color and know the right color and know the right color and know the right people suffer.

  4. T-Rex on October 30th, 2007 8:54 am

    It is simply about risk. Much of the failure of a business is management and under capitalization. Banks are not going to lend to someone without a tract record and nor should they. When a bank lends money they are taking the loss if something goes wrong.

  5. Pat le Pirate on October 31st, 2007 2:08 am

    The institution on mf.
    The client the promise that part of mfis do have the traditional techniques and do not to explain the form of microfinance industry and transitional that are happy with few clients current credit if he proves to new methodology which completely differ from banks added below for more info.

  6. raggnaar on November 1st, 2007 4:50 am

    The risk they dont even know if you are taking lending money to someone you answered yes then its no wonder you dont even.
    The risk they dont even know if you dont even know if you answered yes then its no wonder you are poor.

  7. starflower on November 2nd, 2007 7:24 pm

    Risk factor.

  8. Cindy on November 5th, 2007 4:43 am

    The business to make money they are in the business to make money they are not philanthropists.

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