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Mission Drift of large MFIs?

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  • Schmidt, Oliver
  • Ramana, N. V.

Abstract

Since the Mexican Microfinance Institution (MFI) Compartamos went public in 2007 – whereby promoting NGOs and private investors earned about USD 425 million – leading journals and magazines have repeatedly run rather sceptical articles about microfinance. They are mostly inspired by antagonists of MFIs growing into market driven enterprises. This antagonism has been blended with contemplation about assumed “subprime issues” of microfinance. However, the sector showed a steady performance, different from most other segments of the financial sector. The unholy blend of these two lines of thought risks to create an unwarranted image of microfinance.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24410.

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Date of creation: 07 Jan 2010
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Publication status: Published in Development and Cooperation 2.51(2010): pp. 60-61
Handle: RePEc:pra:mprapa:24410

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Keywords: Microfinance; Mission Drift; Subprime; Sustainability;

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