Associate Banking Diploma — Option Subject
Information Sector Micro-Finance
Objective

To provide candidates with the knowledge and working of a rural economy and an appreciation of the problems and risks inherent in lending to this sector.
SYLLABUS
1. Economic environment in a rural set up. Predominant occupations. Social and cultural issues impacting on Economic activity. Group/Clan organisations in the production processes. Economic status of rural people, identifying peculiar causes of backwardness and how these can be overcome.
2. Government policy toward financing Rural Development - Monetary and Financial Aspects of the policy. Entandikwa.

Activities of NGOs and their policy emphasis. Impact of these programmes.
  3. Sources of finance in Rural Areas including banks, co-operatives, savings societies/groups. Available grants, purposes and uses.
4. Village banks - structure and nature of deposit mobilisation and lending. Appraisal of a rural lending proposal and safeguards against default.
5. Regional rural banks; their role in the rural economy. Genesis, need, peculiarities of the structure, policy, functions and clientele - spread and performance. The Uganda Women’s’ Finance and Credit Trust - a critique.
THE EXAMINATION

Time Allowed: Three hours.

Examination Format: The paper consists of eight 20 mark questions, from which candidates should attempt five.

RECOMMENDED READING

1. Elizabeth R. and Mario Otero, 1997,
Financial Services for Microenterprises: A New View of Microenterprise Finance, Tanzania” Bankers Journal Issue No. 9.

2. Sugiano, 1997, “Microfinance: Lessons from Bank Rakyat Indonesia” (BRI) Tanzania Bankers Journal Issue No. 9.

3. Christine R.
P. Issues on Regulation and Supervision of Microfinance Institutions,” Tanzania Bankers Journal Issue No. 9.