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Morgan Stanley's Approach to Assessing Credit Risks in the Microfinance Industry

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Author Info
Miguel Arvelo
Ju-Lie Bell
Christian Novak
Juliette Rose
Shally Venugopal
Abstract

Growing investor interest in microfinance combined with strong demand from microfinance institutions (MFIs) for capital have caused the financial industry and rating agencies to seek more reliable and precise methods for assessing the risks of MFIs. Drawing on the work of various industry leaders as well as its own experience, Morgan Stanley's Microfinance Institutions Group has created a comprehensive internal credit analysis and rating methodology-one that, by producing global (foreign and local currency) scale ratings, enables its analysts to assess and compare risks both within the growing microfinance sector and relative to other sectors. Copyright (c) 2008 Morgan Stanley.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1745-6622.2008.00175.x
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Publisher Info
Article provided by Morgan Stanley in its journal Journal of Applied Corporate Finance.

Volume (Year): 20 (2008)
Issue (Month): 1 ()
Pages: 124-134
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Handle: RePEc:bla:jacrfn:v:20:y:2008:i:1:p:124-134

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This page was last updated on 2009-12-31.


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