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KING’S OWN INSTITUTE* Success in Higher Education FIN204 MICROFINANCE T220 01/07/2020 15:12 PAGE 1 OF 14 *AUSTRALIAN INSTITUTE OF BUSINESS AND MANAGEMENT PTY LTD © ABN: XXXXXXXXXXCRICOS 03171A FIN204...

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KING’S OWN INSTITUTE*
Success in Higher Education
FIN204 MICROFINANCE T220 01/07/2020 15:12 PAGE 1 OF 14
*AUSTRALIAN INSTITUTE OF BUSINESS AND MANAGEMENT PTY LTD © ABN: XXXXXXXXXXCRICOS 03171A
FIN204 MICROFINANCE T220
All information in the Subject Outline is co
ect at the time of approval. KOI reserves the right to make changes to the
Subject Outline if they become necessary. Any changes require the approval of the KOI Academic Board and will be
formally advised to those students who may be affected by email and via Moodle.
Information contained within this Subject Outline applies to students enrolled in the trimester as indicated
1. General Information

1.1 Administrative Details
Associated HE Award(s) Duration Level Subject Coordinator
B Bus (Acct.); B Bus (Mgmt. & Finance) 1 trimester Level 2 Farzaneh Ortacand
XXXXXXXXXX
P: XXXXXXXXXX
L: Level 1, 545 Kent St.
Consultation: via Moodle or by
appointment.
1.2 Core / Elective
This is an elective subject for B Bus (Mgmt. & Finance) and for B Bus (Acct.).

1.3 Subject Weighting
Indicated below is the weighting of this subject and the total course points.
Subject Credit Points Total Course Credit Points
XXXXXXXXXX4 BBus (Acct.) 96; XXXXXXXXXXBBus (Mgmt. & Finance) 96
1.4 Student Workload
Indicated below is the expected student workload per week for this subject
No. timetabled hours/week* No. personal study
hours/week**
Total workload hours/week***
4 hours/week
(2 hour Lecture + 2 hour Tutorial)
6 hours/week 10 hours/week
* Total time spent per week at lectures and tutorials.
** Total time students are expected to spend per week in studying, completing assignments, etc.
*** Combination of timetable hours and personal study.

1.5 Mode of Delivery Blended, that is face-to-face/online.

1.6 Pre-requisites ACC100 Introduction to Accounting and FIN200 Corporate Financial
Management

1.7 General Study and Resource Requirements
o Students are expected to attend classes with the weekly worksheets and subject support material
provided in Moodle. Students should read this material before coming to class to improve their ability
to participate in the weekly activities.
o Students will require access to the internet and their KOI email and should have basic skills in word
processing software such as MS Word, spreadsheet software such as MS Excel and visual
presentation software such as MS PowerPoint.
o Computers and WIFI facilities are extensively available for student use throughout KOI. Students are
encouraged to make use of the campus Li
ary for reference materials.
Resource requirements specific to this subject: Students should have a non-programmable calculator.
Applications in smart phones will not be sufficient to perform the required calculations.
Approved by KOI Academic Board for T2 2020
mailto: XXXXXXXXXX
FIN204
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*AUSTRALIAN INSTITUTE OF BUSINESS AND MANAGEMENT PTY LTD © ABN: XXXXXXXXXXCRICOS 03171A
2 Academic Details

2.1 Overview of the Subject

Microfinance is a relatively new approach in the finance industry, delivering a range of varied financial
services to poor and socially marginalised people, particularly women, who are not able to obtain financial
services from – or are generally ignored by – traditional financial institutions. This subject is an introduction
to microfinance. It examines the origins, motivations, operations, services, impacts, major risks and
government interventions relating to what is now a major industry across many countries, helping many
millions of people to become self-sufficient. It provides insights into this expanding area as well as case
studies to illustrate its impacts, benefits and limitations.

2.2 Graduate Attributes for Undergraduate Courses

Graduates of the Bachelor of Business (Accounting), and the Bachelor of Business (Management and
Finance) courses from King’s Own Institute will achieve the graduate attributes expected from successful
completion of a Bachelor’s degree under the Australian Qualifications Framework (2nd edition, January
2013). Graduates at this level will be able to apply an advanced body of knowledge in a range of contexts
for professional practice or scholarship and as a pathway for further learning.

King’s Own Institute’s key generic graduate attributes for a bachelor’s level degree are summarised below:
Across the course, these skills are developed progressively at three levels:
o Level 1 Foundation – Students learn the basic skills, theories and techniques of the subject and apply
them in basic, stand-alone contexts.
o Level 2 Intermediate – Students further develop skills, theories and techniques of the subject and
apply them in more complex contexts, beginning to integrate the application with other subjects.
o Level 3 Advanced – Students have a demonstrated ability to plan, research and apply the skills,
theories and techniques of the subject in complex situations, integrating the subject content with a
ange of other subject disciplines within the context of the course.

KOI Bachelor Degree
Graduate Attributes Detailed Description

Knowledge Cu
ent, comprehensive and coherent knowledge

Critical Thinking Critical thinking and creative skills to analyse and synthesise information and evaluate new problems
Communication
Communication skills for effective reading, writing, listening and
presenting in varied modes and contexts and for transfe
ing
knowledge and skills to a variety of audiences

Information Literacy Information and technological skills for accessing, evaluating, managing and using information professionally
Problem Solving Skills
Skills to apply logical and creative thinking to solve problems and
evaluate solutions

Ethical and Cultural
Sensitivity
Appreciation of ethical principles, cultural sensitivity and social
esponsibility, both personally and professionally

Teamwork Leadership and teamwork skills to collaborate, inspire colleagues and manage responsibly with positive results
Professional Skills
Professional skills to exercise judgement in planning, problem
solving and decision making
Approved by KOI Academic Board for T2 2020
FIN204
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*AUSTRALIAN INSTITUTE OF BUSINESS AND MANAGEMENT PTY LTD © ABN: XXXXXXXXXXCRICOS 03171A
2.3 Subject Learning Outcomes
This is a Level 2 subject.

Listed below, are key knowledge and skills students are expected to attain by successfully completing this
subject:

Subject Learning Outcomes Contribution to Graduate Attributes
a) Describe the history and development of microfinance, the
various types of microfinance services and their goals, the
cu
ent scale of operations and the regulatory framework
governing the industry.
) Identify the key users of microfinance services, with emphasis
on the high female participation, the micro-entrepreneurs,
group lending activities and lending methodologies.
c) Outline the various types of microfinance institutions, their
management and the work-force employed, their lending
activities, and the subsidies and other assistance granted.
d) Analyse the benefits, achievements and other impacts of
microfinance and its institutions, along with the criticisms,
limitations and shortcomings of the industry.
e) Discuss the sources of finance for the industry, the profitability
of microfinance institutions and the scope for direct and
portfolio investment in the organisations.
f) Assess the global economic and social performance of
microfinance institutions, along with loan pricing and
sustainability, and examine the future prospects of the industry.

2.4 Subject Content and Structure

Below are details of the subject content and how it is structured, including specific topics covered in lectures
and tutorials. Reading refers to the text unless otherwise indicated.

Tutorial exercises comprise questions on that day’s topic along with a range of multiple-choice questions.

Weekly Planner:

Week
(beginning) Topic covered in each week’s lecture Reading(s)
Expected work as
listed in Moodle
1
06 Jul
What is Microfinance (MF)? History of MF; MF
and the fight against poverty; MF interest
groups; Impact investing; Risks of investing in
MF institutions (MFIs); Social benefits of MFIs;
Selected MF terms.
Chs. 1, 2 Tutorial Exercises
[Listing of Weekly Tutorial
Exercises appears on the
FIN204 Moodle Page.]
2
13 Jul
Intervention in Credit Markets - Major MF
participants; Their regulation; Development
Finance Institutions; Global coverage; Impact
of Geneva and the United Nations on MF.
Ch. 3 Tutorial Exercises
Quiz 1 due
Approved by KOI Academic Board for T2 2020
FIN204
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3
20 Jul
Micro-entrepreneurs (MEs) – the MF clients;
Poverty levels and MEs’ needs; Types of
loans; Operating regions; Industries funded.
Ch. 4 Tutorial Exercises
Quiz 2 due
4
27 Jul
Microfinance Institutions (MFIs) - Definition;
Goals; Types; Funding; Subsidies; Services
provided; Regulation of MFIs.
Ch. 5 Tutorial Exercises
Quiz 3 due
5
03 Aug
Lending Methodologies – Traditional credit
theory and MF; Loan types; Socio-economic
factors – u
an v. rural; gender issues; over-
indebtedness; default prevention and debt
estructuring; The Loan Officer’s role.
Ch. 6 Tutorial Exercises
Quiz 4 due
(Quiz 5 in class)
6
10 Aug Mid trimester exam
Introduction to
Assignment 2, and topic
discussion
Preview of weeks 7-11
16 Aug 2020

23 Aug 2020
Mid trimester
eak
7
24 Aug
Loan Pricing and Sustainability – Interest rate
components; A sustainable interest rate;
Regional differences; Loan recipients’
willingness to pay.
Ch 7 Tutorial Exercises
8
31 Aug
Social Performance – Definition;
Management; Measurement standards and
outcomes; Client protection principles;
Performance goals; Social ratings agencies;
Technical assistance; Links with profitability.
Ch. 8 Tutorial Exercises
Quiz 6 due
9
07 Sep
Criticisms, Concerns and
Answered Same Day Sep 10, 2021 ACC100

Solution

Sarabjeet answered on Sep 12 2021
154 Votes
Running Head: Literature Review
Literature Review
Student Name:
Unit Code:
University Name:
Date:
Contents
Executive Summary    3
Introduction    3
Literature Review: Microfinance Institutions — their operation, regulation, financing, lending policies, and impacts    4
Regulation that should be implemented to ensure sound oversight and consumer protection    5
Describes how the MFIs should obtain their funds, and whether subsidies should be granted.    5
Details the lending policies to be introduced, including likely bo
owers, loan limits, and interest rates.    6
Assesses likely impacts (economic, cultural, and psychological), including criticisms and drawbacks    8
Analysis    of 10
Recommendations    10
Conclusion    12
References    13
Executive Summary
The provision of micro-credit to the poor more particularly to the youth and women is an important factor in reducing poverty through empowerment. Many studies show that self-employment can create jobs and increase incomes. There are signs of independence for women and youth, which include household expenses for women and youth, which can allow young people to become self-employed and thus increase income. This report discusses Microfinance Institutions and their operation, regulation, financing, lending policies and impacts. This report discusses the history of and the reasons for establishing MFIs, with a
ief outline of their structure. This study outlines regulation that should be implemented to ensure sound oversight and consumer protection. How the MFIs should obtain their funds, and whether subsidies should be granted and details the lending policies to be introduced, including likely bo
owers, loan limits and interest rates are also included in this report. Likely impacts (economic, cultural and psychological), including criticisms and drawbacks and recommendations for the direction for the Govemment implement, implement with safeguards or abandon are also discussed in this report.
Introduction
The revolution ofmicrofinance has changed the way we treat poor people in Latin America andAsia. Some of thenation’s lend large amounts of credit, usually to low-income groups or households, which is usually rejected by official financial institutions. In turn, significant research efforts to assess Coverage and the impact of such programs on poverty. This literature review examines the extent to which microfinance aims to benefit the poor, ensure a measurable and positive influence on the lives of clients as well as their families, establish financial institutions or reach out, and empower poor females and also youth in society. The issue of poverty has been refe
ed to as the World Bank. Finally, Africa and Asia, including parts of Asia, with India, are groups of the European empires.Industrial countries have some responsibilities to the world’s poor.When they gained independence, they needed some help. The US-led strategy is to introduce free trade in developing countries, which it hopes to incorporate into the formal economy. As long as the country follows the policies set by the World Bank, it can provide loans to developing countries through state governments and other official institutions. The disadvantage is that most of the money was transfe
ed to people of political ability. Decades of aid have been ineffective when reports of co
uption surfaced. Many people believe that government aid has become dependent and, as a result, has failed to help the community out of poverty. If such large global organizations and state governments fail to address poverty, then microfinance will be at the forefront of social change develop thinking. This change at the time led to a change in economic thinking. The move
ought Thatcher and Reagan to power in support of a free-market solution also a general lack of confidence in official institutions. Though, the ideological process has moved in the right direction, creating microfinance opportunities. With the promotion of microfinance, the focus has shifted to growing and supporting the "informal" sector, and hopefully, a helping hand can lift people out of poverty(Janda and Zetek, 2015).
Literature Review: Microfinance Institutions — their operation, regulation, financing, lending policies, and impacts
Reasons for establishing MFIs
Microfinance refers to the provision of financial services: the provision of credit, savings, insurance, or transfers to poor families. This allows them to work independently by doing business and earning income(Dube and Kamath, 2018). Thus, (Webster) and Fiedler, 1996) believe that the initial training of business skills should be combined with the provision of microcredit to progress the ability of the poor to use the funds as well as health and business asset insurance, but these are ignored by the profitable banks.(Sarah, 2011) argues that microfinance allows the world's poor, especially women in developing countries, to empower themselves. In the case of gender equality, microfinance as an effective tool to promote empowering women and youth(Geonka and Henley, 2011).
Regulation that should be implemented to ensure sound oversight and consumer protection
Microfinance banks have strict regulations. The control of microfinance institutions is usually much quieter. They work with clients not only as lenders but also as mentors for small businesses (Toth, 2013). Microfinance organizations increase operating costs due to their business model, which is a model of home-based services due to staff training and lower credit levels. With the introduction of microfinance policy by former CBN Governor Professor Chukwuma Soludo, the microfinance banking business was established in 2005(Dube and Kamath, 2018). This policy is driven by the impact of microfinance, which is praised internationally for helping the able-bodied to get out of poverty and thereby reduce poverty. Therefore, the purpose of establishing a microfinance bank is to help reduce poverty in the country over time (Maitrot and NiiooZarazza, 2017).
Describes how the MFIs should obtain their funds, and whether subsidies should be granted.
According to the World Bank, an estimated 1.7 billion people worldwide do not have access to...
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