Book DescriptionFinancial Sector Policy and the Poor is part of the World Bank Working Paper series These papers are published to communicate the results of the Banks ongoing research and to stimulate public discussion This paper presents new empirical evidence on how financial sector policy can help the poor It is often thought that promotion оеютт of specialized microfinance institutions is the best or only way forward However, a strong mainstream financial system is also pro-poorperhapseven more so While mainstream financial depth is measurably associated with lower poverty, for microfinance this is not yet so The roles played by microfinance and mainstream finance in tackling poverty should be regarded as complementary and overlapping rather than as competing alternatives The essential similarities between the two will become more evident as individual microfinance firms, or associations of firms, grow to the scale needed for sustainability Policy design that recognizes the need for larger and stronger microfinance institutions poses no threat to the health of mainstream finance Such a policy would not impose low interest rate ceilings; nevertheless, the goal of protecting the vulnerable from credit market abuses and prejudice should not be neglected in an effective package of policies favorable to the growth of both micro and mainstream finance World Bank Working Papers are available individually or by subscription, both in print and online Download DescriptionFinancial Sector Policy and the Poor is part of the World Bank Working Paper series These papers are published to communicate the results of the Bank's ongoing research and to stimulate public discussion This paper presents new empirical evidence on how financial sector policy can help the poor It is often thought that promotion of specialized microfinance institutions is the best or only way forward However, a strong mainstream financial system is also pro-poor-perhaps even more so While mainstream financial depth is measurably associated with lower poverty, for microfinance this is not yet so The roles played by microfinance and mainstream finance in tackling poverty should be regarded as complementary and overlapping rather than as competing alternatives The essential similarities between the two will become more evident as individual microfinance firms, or associations of firms, grow to the scale needed for sustainability Policy design that recognizes the need for larger and stronger microfinanceinstitutions poses no threat to the health of mainstream finance Such a policy would not impose low interest rate ceilings; nevertheless, the goal of protecting the vulnerable from credit market abuses and prejudice should not be neglected in an effective package of policies favorable to the growth of both micro and mainstream finance.  antigla2004 г ISBN 0821359673.