Publication

This paper examines efforts by two commercial banks in Zimbabwe and Kenya to start microfinance programs. It outlines the institutional changes, the loan and saving products which they have introduced as well as their progress. The authors contend that commercial banks have introduced microfinance operations in response to increased competition in the financial sector, encouraging them to seek new markets. They also demonstrate that donor-funded technical assistance has been crucial in overcoming obstacles, including resistance to the new microfinance culture from bank staff.