Microfinance as a tool for poverty reduction. A case of study

Abstract

The financial sector plays a key role in long-term sustainable development and is essential to achieving the Sustainable Development Goals (SDGs), which have as their goal the "end of poverty" (1ST SDG). In this context, microfinance, and in particular microcredit, appears to be an appropriate tool for combating poverty, through the financing of microprojects, for those in a situation of social and financial exclusion. For this reason, the objective of this study is to analyze, through descriptive statistics, how microcredits can be an instrument to help eradicate poverty by studying the particular case of Bangladesh where this financing source is most widespread. Data for the analysis will be provided by the Grameen Bank and the World Bank. The results show that microloans can have a significant influence on certain economic variables and society in Bangladesh.