UNFOLDING THE COMPLEXITIES AMONGST ISSUES OF MICROFINANCE BANKS IN PAKISTAN

Abstract

The aim of this study is to identify potential issues of Microfinance Banking in Pakistan, which are of great importance in affecting performance and growth of banking sector in Pakistan in order to curtail prevailing econ disparity in the country. After the identification of the issues involved, the inter-relationship of these issues is evolved after seeking the opinion experts having relevant knowledge competency and experience. It is purposive sampling by collecting actual data as well as by face-to-face interview through questionnaire from a panel of 15 individuals. Interpretive Structural Modeling (ISM) is applied to structure and model inter-relationships among different issues. Matriced' Impacts Croise's Multiplication Appliquée a UN Classement (Cross Impact Matrix Multiplication Applied to Classification) popularly known as MICMAC analysis is wed to categorize independent, dependent, autonomous, and linkage factors. This study helps stakeholders (i.e. different financial institutions, microfinance banking, academia, researchers, and regulators, international development agencies) to identify and structure critical issues and their relationship with each other crucial for transformation, restructuring and value addition in banking sector for economic growth and stability of Pakistan.

Keywords: Microfinance Banking, Issues of Microfinance Banking, ISM, MICMAC, Stakeholders