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Community Banking - Micro-finance and Social Entrepreneurs

by Haris Fad┼żan

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Our solution

A solution that could stimulate the growth of refugee communities, increase the rate of their employment, their income, and consequently, their role in the local society is the establishment of a bank, which disregards the the need for collateral and creates a banking system based on mutual trust, accountability, participation, and creativity. If financial resources can be made available to poor people on terms and conditions that are appropriate and reasonable, they will spur their own economy.


What's the business opportunity for host and refugee community

Microfinance loans which do not include the use of collateral require the establishment of another system that will ensure the repayment of the loans: group lending based on mutual trust. The groups in question are usually have five members, each of which stimulates the other members to repay his loans, either by encouragement or by investing his/her own money to make the repayment. Since each group member must repay his loans if anyone in the group is to receive any loan in the future, it works


How has it been implemented and what impact it had

The suggested solution is based on the financial practice introduced by Muhammad Yunus, Bangladeshi social entrepreneur, banker, economist, and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance. A potential impact is the establishment of sustainable refugee communities led by social entrepreneurs. It gives the refugees a chance to take their lives into their own hands and become a part of society.


Our Skills and Experience

I am a Bachelor of Economics with special focus in Finance and have been working on implementing different projects for the past four years. Also, I have an excellent command of the English language, experience in planning and implementing project proposals and rather developed sense of business. Recently, I started working with GIZ in Bosnia and Herzegovina, and I do not have experience working in Rwanda. However, I believe that I possess the skillset necessary for implementing the solution.