According to the head of ASA’s new private equity fund, Dirk Brouwer, the Bangladeshi microfinance market is almost saturated with micro-loans. In by far the largest microfinance market in the world, three Bangladeshi microbanks åö Grameen, BRAC, ASA åö serve 20 million clients in a market of 25 million potential borrowers. As this market approaches saturation, ASA has now lowered its rates, forcing the others to follow. The maturing microfinance market in Bangladesh means poor people pay less for capital. While significant resources are spent each year in microfinance to measure “social impact,” this measure åö price åö is beautiful in its simplicity.
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