QUESTION TWO

a$)$ Mr$.$ John Gerhard, Chief Executive Officer $($CEO$)$ of an international bank, once commented "the microfinance movement in developing countries and transition economies is bound to fail, and only banks can provide a lasting solution to the problem of financial exclusion in those countries" Do you agree or disagree with the CEO? Comment as to why banks may not necessarily address the needs of the poor. Also highlight the features of microfinance that suits the needs of the poor. $[15$Marks$]$