Grameen Bank, Bangladesh
PREVENTING A REPAYMENT CRISIS
If repayment problems are inevitable, how can management arrest their
developing into crises? Crucial elements for close supervision include:
- Targeting -- Group recognition must be done by a supervisor more senior
than the branch manager and must include visiting the house of each prospective member to ensure that all are bottom-level poor. Non-poor group members
are the first to refuse collective responsibility when the first repayment problems
- Center Discipline -- Surprise center visits should be routinely made by
branch managers, program officers, and area managers to check on attendance,
payments made, conduct of meetings, and loan utilization and explore any problems of members.
- Quarterly Monitoring and Evaluation -- An effective system compares plan
targets with actual performance and analyzes gaps between them.
- Surprise Internal Audits -- Unannounced audit visits to branch offices and village centers examine both financial management and work performance and
provide an independent check for monitoring reports.
- "Inovation and Transfer" March 1997, Vol. 6, No.1
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