TRANSFORMATION OF MICRO-FINANCE OPERATIONS AND IMPLICATIONS

The present MFI model wasn't just about giving loans. It was also about creating livelihood mechanisms, which would build capacity among the poor. to repay their loans easily, and leave them better off than before. While microfinance institutions are experiencing different forms of transformation, this paper focuses on the transformation of NGOs into commercial, regulated financial institutions. An overview of the transformation experience in micro-finance is also summarized in this paper. Microfinance is not anything new; it follows humankind since the ancient era. It markedly appeared already in the 18th century (e.g. Jonathan Swift inspired the Irish Loan Funds) and especially in the first half of the 19th century in the middle Europe. Several credit union systems and cooperative banks have been named after Raffeisen, Kampelik etc. Robert Owen, William King, G.D.H. Cole, Charles Gide and others were very well known theorists in this period. The development of the MFls accelerated right in the period of decolonization when new states originated. next development of the microfinance in Less Developed Countries(LDCs) in the 70s of the last century, were above all Muhammad Yunus (Grameen Bank), John Kaith Hatch (FINCA system), Akhtar Hameed Khan (Tameer Bank), Ela Blatt (SEWA - Self-Employed Women's Association), Michaela Walsh (WWB - Women's World Banking) and others.