The social performance of microfinance institutions in Bangkok

Abstract

The microfinance sector in Thailand is at a crossroads at the moment. Drowning in a plethora of government subsidized small loan schemes which are provided to uplift the grassroots economy with small loans with minimal interest rates, repayable over sometime to motorbike taxi drivers, taxi drivers and vendors. These popular loan programs make it difficult for community and international microfinance institutions to operate and thus, certify the double bottom line standard. Microfinance’s ability to guarantee financial as well as social benefits to those excluded from traditional banking services This study comparatively analyzes the social performance of two microfinance institutions operating in the urban slum Klong Toey. A comparative analysis allows the organizations staff, management and board members to monitor and discuss the strengths and weaknesses to find innovative methods to improve social performance policies. The hope of this study is that through increased transparency and greater emphasis on social responsibility the Thai microfinance sector can better improve the products and services offered to its clients as well as empower those microfinance serves.