Bank

This brief review of the business model used public bank (commercial bank) in the microfinance business. In effect since the 1970s, when this is more and more banks are involved in microfinance into the business after the first financial crisis in Asia shows that many business microfinance stronger in the face of the crisis.

Previously many analysts think only of many NGOs working in the microfinance business, but the further development shows that not a few banks that run the business microfinance (World Bank, 1996; Almeyda, 1997). Almayda study shows that many banks that participate in microfinance in the number of significant even if compared with the NGOs.

Studies also indicate the reasons why banks into the microfinance business: profits, market changes and competition is tight in the corporate financing, social reasons, and government regulations that require banks finance microfinance.

In general, there are 4 business model in the microfinance banks, :

1. Internal microfinance units in the bank
2. Linkage program
3. Establish microfinance company
4. Establish business services, microfinance

Of the four models above, in the model used is the linkage program. Linkage program was selected because many banks only provide loans with interest rates on commercial microfinance institutions (generally ODA). With the linkage run the program, the banks received much benefit from microfinance (credit, commercial interest, according to government programs, and get additional level of the bank) without having to engage in microfinance operations.