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Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
Utilizing Remittance As A Source Of Micro Financing
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Utilizing Remittance As A Source Of Micro Financing

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My patial findings from my research topic

My patial findings from my research topic

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  • 1. Utilizing Remittance as a source of Micro Financing<br />A study on UK NRB remitters’ investor market<br />By JameRasheed<br />
  • 2. Research Objective<br />To determine if remitters in UK can play a part in supporting micro financing projects in Bangladesh<br />
  • 3. Research Questions<br />Analyse the investment pattern of Bangladeshi remitters living in UK.<br />Assess the interest in investing in micro financing projects in Bangladesh by UK remitters.<br />Create a typology of strategies which can encourage UK NRB investors in participating in investing in Bangladesh.<br />
  • 4. General Sources of Finance for Micro Finance Projects<br />Donor and government grants and soft loans <br />Savings<br />demand deposits, passbook savings, time deposits, etc <br />
  • 5. Evolution Process of Microfinance Financing <br />Microcredit uses the graduation principle<br />Size of repeat loans increases according to repayment record<br />Sustaining the program through new funds<br />Debt capital <br />Short term borrowing <br />From commercial and central banks<br />Long term borrowing<br />From well developed capital markets<br />
  • 6. Similarities and Differences between Remittance and Micro Finance Approaches & Outcomes<br />Both provide financial freedom<br />Micro Finance has a structured process of investment <br />Remittance is unstructured and individualistic<br />Both aim for alleviation of poverty <br />Micro finance addresses betterment of society<br />Remittance addresses individuals<br />Both derive their sources from an ideology of charity and philanthropy<br />Both have the same end game<br />Microfinance is a source of credit<br />Remittance is a source of savings<br />
  • 7. Remittance and Employment<br />Remittance flow has been constantly rising. In fact, 2008 saw the highest recorded flow of remittances, despite the recession –related level off of employment abroad<br />
  • 8. WB Estimate of Average Remittance Transaction Size<br />
  • 9. WB Estimate of Average Transaction Size<br />About two-thirds of 20 villages from 10 district suggested that the remittance is received by Bank Draft<br />However, 16 percent of that sample remit money initially into a third party account from where it is distributed to the beneficiary<br />24 percent send money through hundi process then through formal channels.<br />
  • 10. Research Sampling Process<br />The sample was selected through the snow ball sampling method<br />The sample size was 20 respondents who had established restaurants in UK from the Sylhety community<br /> The questionaire was based on the US AIDS remittance data mining system<br />
  • 11. Average ticket size per corridor in BDT (3 month)<br />BRAC Bank Ltd<br />
  • 12. General remittance utilizing pattern from UK<br />
  • 13. General investment pattern of remitters in UK<br />
  • 14. Why Fixed assets?<br />Land value always appreciates<br />It is generally stable and lucrative<br />Can be turned into a fixed source of income<br />Bangladesh&apos;s high population rate ensures rising demand for land thus increasing the price.<br />
  • 15. Religion as a criterion for investment<br />A research conducted by DFID in 2005 identifies that Zakat was the prime means of investment from UK . However, this is usually done as there are no known other favourable investment tool available to a remitter. <br />
  • 16. Interest in investing in micro- financing projects in Bangladesh<br />
  • 17. Governments ability in reducing poverty<br />
  • 18. Investing in government and private sector for MFI projects <br />
  • 19. Trust factor between government and private sector MFI<br />
  • 20. Expectation on the rate of return on MFI projects<br />
  • 21. BB initiative to remitters investment <br />Tax haven for remitter investment<br />Bonds<br />FC and NFCD account<br />WEDB Bond (provides return)<br />USD Premium Bond (provides return)<br />NITA account (investors account on share market, bonds etc)<br />
  • 22. Conclusion<br />UK remitters have the highest potential to invest in micro financing projects provided there is a return.<br />The currency conversion rate makes it feasible to have the high investment potential in generating investment funds.<br />Though religion is a factor in the investment decision there is an interest in getting a return on investment even if its relatively less.<br />There is a high probability of remitter investment in the private sector as opposed to the government sector.<br />
  • 23. Recommendation<br />Create a separate fund in the foreign currency reserve for development purposes.<br />New development bond or WEDB that can be sold to remitters and generate separate fund for development with return on ROI<br />Direct deposited fund directly for the MFI’s with minimal governmental involvement.<br />
  • 24. Potential lacking of the survey<br />An adequate number of respondent to create a potential link between religious views and investment in Bangladesh.<br />Types of preferred investment by remitters and their expected return.<br />Specific investment climate by remitters to initiate investment in Bangladesh.<br />
  • 25. The End<br />

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