Developing new financial institutions in Japan - application of the Grameen Bank Model

2015 Fiscal Year Final Research Report

• Project/Area Number: 24530382
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Public finance/Monetary economics
• Research Institution: Ritsumeikan Asia Pacific University
• Principal Investigator: BARAI Munim Kumar 立命館アジア太平洋大学, 国際経営学部, 教授 (50584017)
• Co-Investigator(Renkei-kenkyūsha): SUZUKI Yasushi Ritsumeikan Asia Pacific University, College of International Management, Professor (00350752)
• Project Period (FY): 2012-04-01 – 2016-03-31
• Keywords: Japanese FS / Grameen Bank / Japanese MFIs / Ownership Structure / Capitalization / Mode of Lending / Rate of Interest / Monitoring and Repayment

Outline of Final Research Achievements

The research was devoted to structuring a microfinance institution in Japan modelled upon the 'Grameen Bank' (GB) of Bangladesh. The outcome indicates that any Japanese microfinance institution should be restructured by giving emphasize on size, ownership structure, method of capitalization, mode of lending, areas of financing, rate of interest, monitoring and loan repayment mechanism and so on. On capitalization, an interesting idea has emerged on the initial source of capitalization. Reportedly, different banks in Japan have accumulated a vast amount of unclaimed fund over a period of time. The outcome suggests the development of a legal mechanism to provide initial finance for a microfinance institution from that fund. Private participation may also be assessed. The research resulted in a good number of articles published in research journals. The researcher also visited Bangladesh, India and England for field study and seminar presentations.

Free Research Field

Financial Markets and Institutions