INSTITUTIONS
Asia is characterised by the number and variety of the types of institutions (public and private banks, NBFIs, cooperative institutions and NGOs) that operate in the microfinance sector. They are mostly institutions that are not regulated or supervised, small in size and unsustainable. At the same time, the region has the largest institutions in the world, with such examples as BRI in Indonesia, VBSP in Vietnam, and ASA, BRAC and Grameen Bank in Bangladesh, with each one having over 3.5 million borrowers. The situation is defined by a major concentration of the offer into a handful of institutions, as 10% of them cater for 80% of the borrowers.
Historically speaking, the state and NGOs have played an important part in the intermediation with microenterprises, and in terms of their overall business they continue to be the main source of financial services for the region’s microenterprises. Nevertheless, excluding the NGOs in Bangladesh, regulated and supervised institutions are the ones that dominate the sector in Asia in terms of their reach.
