tag:blogger.com,1999:blog-12861485.post304579271561776497..comments2023-11-05T02:46:43.890-05:00Comments on Poverty News Blog: Bangladesh caps microcredit interest ratesAnonymoushttp://www.blogger.com/profile/04458883515035502713noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-12861485.post-48034953949324291202010-11-19T16:31:36.425-05:002010-11-19T16:31:36.425-05:00It's a shame that this is happening, though ul...It's a shame that this is happening, though ultimately, competition might be good for the industry. If one bank is charging interest rates are too high, then another bank will come along and offer better <a href="http://andrewjohns.ca/cash_maximizer_program" rel="nofollow">interest rates</a>. It's all in the execution, though. Grameen bank had a substantially lower default rate than even regular banks because people saw this as their last and only option. If they see other banks appearing, then they might be less scared of defaulting since they could simply go to another bank. .Tom Brownnoreply@blogger.comtag:blogger.com,1999:blog-12861485.post-36605197489544601342010-11-10T00:32:53.683-05:002010-11-10T00:32:53.683-05:00Even while granting credibility to Mosharraf Hossa...Even while granting credibility to Mosharraf Hossain's suggestion that "to stay afloat" microlenders need to charge interest rates above thirty percent, one can favor the new rate cap in Bangladesh (and similar caps elsewhere). The motivation of sky-high rates by lending risks rather than lenders' greed will not save borrowers from the harm incurred by taking out such loans. And clearly, preventing this harm has to trump allowing the microlending sector to thrive.Don Stollhttp://dstoll49.wordpress.com/noreply@blogger.com