Domestic finance and microfinance Assignment Example | Topics and Well Written Essays - 250 words

Domestic finance and microfinance - Assignment Example Their role in the market makes a big difference between the two lending institutions. It’s also vital noting that the amount they finance differs in terms of their amount and their requirement. The motive of MFIs was to help the low-income people access banking as opposed to the commercial banks that have different target group (Ledgerwood &White, 2006). Lastly, MFIs can provide loans to low-income earners on the basis formation groups. As compared to the commercial banks, MFIs are effective in working with the low-income earners. Governments also support their operations in order to boost their economy. The MFIs play crucial roles in the developing of a countrys economy. They help the members of such countries in setting up their business by financing them. They also help them people in understanding the need to do savings through their training forums. Through their operations, they help in increasing supply and circulation of money. Moreover, in terms of management they help them to know what they are required to do in managing what they have and use those assets to generate income (Ledgerwood &White, 2006). However, as the MFIs operates, they are not allowed to spread misleading information as a way of persuading their target customers. In this case, ethical standards regulating banking sector remains a must to them too and never bleach