From the European Microfinance Platform (e-MFP): Banks’ traditional activities include the collection of savings, the distribution of loans together with the provision of means of payment. Credit products (also known every flake micro-credit solutions) were the get-go products to live developed inward inclusive finance. Being more than than lucrative for the service provider, loans hold long been the just type of product offered by banks. Yet, savings products also carry many advantages. For vulnerable, excluded together with depression-income populations, savings help secure a source of income inwards addition to assist them make do with setbacks inwards add-on to other unforeseen events. For these target populations, savings facilitate some level of empowerment past offering a safer (in addition to more than reassuring) way to tending their finances over the long term. The risks are minimal for the service provider, as savings offering a guarantee. Aware of these benefits, some fiscal as well as non-financial service providers have gear upwards savings programmes amongst their traditional activities.
Muktinath serves low-income households too women inwards rural areas besides has cook a special department dedicated solely to that target population. It has tailored a collective as good as solidarity savings model specifically for these customers, with doorstep collections. The products it distributes include retirement savings plans, insurance plans also savings schemes specifically for migrant workers together with the families they bring left behind inward Nepal. Muktinath has also developed fiscal educational activity as good as home budget preparation through dramas inward addition to a purpose-made film entitled “Paribartan” (which means “transformation” inwards English language).
Savings are an essential portion of the effort to work inclusive finance every bit a tool for poverty reduction. This has acquire all the more than crucial inward the context of the electric electric current crisis. In her spoken language, Her Royal Highness the Grand Duchess of Luxembourg, President of the European Microfinance Award’s High Jury, underlined: “microfinance institutions do extraordinary slice of work. They bring designed amazing in add-on to vital savings solutions to avert the run a take chances of millions of vulnerable people falling into extreme poverty, as they confront the unprecedented upheaval we are currently seeing. The savings theme is specially pertinent this yr equally it promotes self-reliance, offers rubber solutions, encourages evolution inward improver to provides the way, especially for women, to go the architects of change. With this inward heed, I would similar to congratulate the iii finalists for their inspiring initiatives!”
As the recipient of the European Microfinance Award, Muktinath Bikas Bank Ltd. will have EUR 100,000 (USD 119,000) from the Ministry of Foreign as well as European Affairs of the Grand Duchy of Grand Duchy of Luxembourg – Directorate for Development Cooperation together with Humanitarian Affairs. Speaking well-nigh the Award, Mr Franz Fayot, Minister for Development Cooperation as well as Humanitarian Affairs, said “Over the grade of this yr, savings take been central inward creating resilience amidst millions of people. Families together with businesses have got come up upwardly nether fiscal strain due to the disruption of economical activities. In these challenging times, inclusive savings assist mitigate the affect of the pandemic. I am confident that this yr’s European Microfinance Award will draw attending to the value of savings equally an essential financial service, also create a dynamic that volition encourage its employment, notably for the empowerment of women.”
The European Microfinance Award
Launched besides organised inwards Grand Duchy of Grand Duchy of Luxembourg since 2005, the European Microfinance Award rewards innovative inclusive finance initiatives, also has ii goals: to payoff excellence as well as to catalogue together with disseminate the about suitable practices together with and so that they tin tin alive applied by others. The Award is a joint initiatory organised past the Ministry of Foreign as well as European Affairs of the Grand Duchy of Grand Duchy of Luxembourg – Directorate for Development Cooperation as well as Humanitarian Affairs, the European Microfinance Platform (e-MFP) as well the Inclusive Finance Network Grand Duchy of Luxembourg (InFiNe.lu).
This mail service is office of a sponsored serial on European Microfinance Week 2020, which is took identify online from Nov 18 through November xx. The upshot is held annually past times e-MFP. MicroCapital has been engaged to promote as good as written written report on the conference each twelvemonth since 2012.
Sources in addition to Additional Resources
Muktinath Bikas Bank Ltd, Winner of the European Microfinance Award 2020
European Microfinance Platform (e-MFP) data on European Microfinance Week 2020
MicroCapital coverage since 2012 of European Microfinance Week, including each European Microfinance Award