On the downside, however, banks lack key ingredients, most of all, the financial methodologies to reach the low income population. There are several issues trammeling banks. The issue of commitment is fairly significant.
The commitment of commercial banks (particularly the larger banks) to micro enterprise lending is often fragile and generally vests on the direction provided by one or two Board Members rather than it being rooted in their institutional mandate. Secondly, they are hampered by their organizational structures.