Open Access
Growth and vulnerabilities in microfinance
Stephen Rasmussen,Greg Chen,Xavier Reille +2 more
- pp 1-16
TLDR
In this paper, the authors describe the key contextual factors that affected the severity and spread of the credit delinquency crisis and break down the three internal industry vulnerabilities that lie at the heart of the problems.Abstract:
This focus note begins by briefly telling the story of recent growth in the four countries leading into the credit delinquency crises. The second section describes the key contextual factors that affected the severity and spread of the crises. The third section breaks down the three internal industry vulnerabilities that lie at the heart of the problems. This is followed by a discussion on how market infrastructure and tools can help to mitigate some of the dangers. The note concludes by placing these experiences within the broader context of the global microfinance story and makes recommendations to strengthen the industry.read more
Citations
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Journal ArticleDOI
Microfinance: Creating Opportunities for the Poor?
TL;DR: In this paper, the authors introduce the topic of microfinancing to a wider audience of management researchers and identify opportunities for future research in this new and growing area, which is an emerging phenomenon that opens access to capital for individuals previously shut out from financial services.
Posted Content
Microfinance and the Illusion of Development: From HubrisTo Nemesis in Thirty Years
TL;DR: The authors argue that while the microfinance model may well generate some narrow positive short run outcomes for a few lucky individuals, these positive outcomes are very limited in number and anyway swamped by much wider longer run downsides and opportunity costs at the community and national level.
Competition and Performance of Microfinance Institutions
TL;DR: In this paper, the effect of competition among micro-finance institutions (MFIs) on their performance is examined by constructing a Lerner index, which assess the effect that increased competition has on outreach, loan repayment, efficiency and financial performance.
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Microfinance and the Illusion of Development: From Hubris to Nemesis in Thirty Years
Milford Bateman,Ha-Joon Chang +1 more
TL;DR: The authors argue that while the microfinance model may well generate some narrow positive short run outcomes for a few lucky individuals, these positive outcomes are very limited in number and anyway swamped by much wider longer run downsides and opportunity costs at the community and national level.
Journal ArticleDOI
Microfinance and the challenge of financial inclusion for development
TL;DR: A review of the recent literature on micro finance in developing countries and a critical assessment of its effectiveness is provided in this paper, where the authors examine the experience of India, which has one of the largest micro finance sectors in the world, and particularly the unfolding of the microfinance crisis in Andhra Pradesh.
References
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Book
Portfolios of the Poor: How the World's Poor Live on $2 a Day
TL;DR: Portfolios of the Poor as mentioned in this paper is the first book to explain systematically how the poor find solutions to the problems of daily living on incomes of two dollars a day or less, where the authors report on the yearlong "financial diaries" of villagers and slum dwellers.
Book
Mainstreaming Microfinance: How Lending to the Poor Began, Grew and Came of Age in Bolivia
TL;DR: In this paper, the authors describe how Bolivia's special breed of social entrepreneurs found the keys to unlock the huge unmet demand of informal clients, and how the beliefs of these social activists shaped the character of the variety of institutions that now dominate Bolivia's micro finance sector.
Book
Microfinance India: State of the Sector Report 2009
TL;DR: Sharma et al. as mentioned in this paper discuss the early signs of a new thrust in Micro-Finance Institutions: Slow Recovery from a Disaster Andhra Pradesh: Dream Turn Nightmare Investment Climate: Fairweather Partners Social Performance Management: Beyond Responsible Finance and Customer Protection Policy Environment and the Regulation: Hard Times Ahead National Rural Livelihoods Mission: Will It Go beyond Finance? Financial Inclusion: March of the Banks Global Trends in MicroFinance Future: Beginning Again? Appendix Bibliography
Posted Content
The rise, fall, and recovery of the microfinance sector in Morocco
TL;DR: The Moroccan micro finance sector has been facing a crisis since 2007 as mentioned in this paper, and since 2007, the micro credit sector has faced a crisis in the Arab world, and the micro-finance sector in Morocco has been confronted with a crisis.