IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/10994.html

Microfinance institutions in the development of financial markets

Author

Listed:
  • Terberger, Eva

Abstract

For the last two decades, microfinance has ranked high on the list of policy instruments for fighting poverty. Supporting the creation of access to formal financial services for low-income households holds out the promise of improving the living conditions of poor families and fostering economic development. Furthermore, it is claimed to be a very cost-effective approach because some non-governmental organizations (NGOs); that have been upscaled into microbanks have shown that financial services can be offered to low-income households while covering costs and even earning a moderate profit. Recent studies, however, are sceptical about the high expectations raised by the microfinance approach, since profitable microfinance institutions (MFIs); are the exception rather than the rule. Institutional innovation is called for in order to reproduce these rare successes on a larger scale. This article aims to offer preliminary insights into the potential of two rather new institutional alternatives to upscaling: the creation of microfinance departments at existing for-profit banks (i.e., downscaling); and the founding of greenfield banks.

Suggested Citation

  • Terberger, Eva, 2003. "Microfinance institutions in the development of financial markets," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    • Handle: RePEc:ecr:col070:10994
    Note: Includes bibliography
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/10994
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stanley Kojo Dary & Haruna Issahaku, 2013. "Exploring Innovations in Microfinance Institutions in Northern Ghana," Business and Economic Research, Macrothink Institute, vol. 3(1), pages 442-460, June.
    2. Wagner, Charlotte & Winkler, Adalbert, 2013. "The Vulnerability of Microfinance to Financial Turmoil – Evidence from the Global Financial Crisis," World Development, Elsevier, vol. 51(C), pages 71-90.
    3. Mushtaq, Rizwan & Bruneau, Catherine, 2019. "Microfinance, financial inclusion and ICT: Implications for poverty and inequality," Technology in Society, Elsevier, vol. 59(C).
    4. Tamgid Chowdhury, 2014. "Service delivery effectiveness of microcredit-driven non-government organizations in alleviating poverty: a study on Bangladesh," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(4), pages 347-377, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gutiérrez-Romero, Roxana & Ahamed, Mostak, 2021. "COVID-19 response needs to broaden financial inclusion to curb the rise in poverty," World Development, Elsevier, vol. 138(C).
    2. Junyon Im & Sunny Sun, 2015. "Profits and outreach to the poor: The institutional logics of microfinance institutions," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 95-117, March.
    3. Lucia Dalla Pellegrina & Giorgio Di Maio & Paolo Landoni & Emanuele Rusinà, 2021. "Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1049-1085, October.
    4. Elikplimi K. Agbloyor & Simplice A. Asongu & Peter Muriu, 2021. "Sustainability, Growth and Impact of MFIs in Africa," Working Papers of the African Governance and Development Institute. 21/083, African Governance and Development Institute..
    5. Janda, Karel & Zetek, Pavel, 2013. "Macroeconomic factors influencing interest rates of microfinance institutions in Latin America," MPRA Paper 49973, University Library of Munich, Germany.
    6. DE CNUDDE, Sofie & MOEYERSOMS, Julie & STANKOVA, Marija & TOBBACK, Ellen & JAVALY, Vinayak & MARTENS, David, 2015. "Who cares about your Facebook friends? Credit scoring for microfinance," Working Papers 2015018, University of Antwerp, Faculty of Business and Economics.
    7. Simon Cornée, 2014. "Soft Information and Default Prediction in Cooperative and Social Banks," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 3(1), pages 89-103, June.
    8. Aurélie SANNAJUST & Fabien ROUX & Anissa CHAIBI, 2014. "Crowdfunding In France: A New Revolution?," Working Papers 2014-234, Department of Research, Ipag Business School.
    9. Hailu Abebe Wondirad, 2022. "Interest rates in microfinance: What is a fair interest rate when we lend to the poor?," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4537-4548, December.
    10. M. Kabir Hassan, 2002. "The Microfinance Revolution and the Grameen Bank Experience in Bangladesh," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 11(3), pages 205-265, August.
    11. Hamidou Jawara, 2020. "Access to savings and household welfare evidence from a household survey in The Gambia," African Development Review, African Development Bank, vol. 32(2), pages 138-149, June.
    12. Ben R. Martin, 2016. "Twenty challenges for innovation studies," Science and Public Policy, Oxford University Press, vol. 43(3), pages 432-450.
    13. Abu S. Shonchoy, 2015. "Seasonal Migration and Microcredit During Agricultural Lean Seasons: Evidence from Northwest Bangladesh," The Developing Economies, Institute of Developing Economies, vol. 53(1), pages 1-26, March.
    14. Munshi Sulaiman & Mehnaz Rabbani & Vivek A. Prakash, 2010. "Impact Assessment of CFPR/TUP: A Descriptive Analysis Based on 2002-2005 Panel Data," Working Papers id:2567, eSocialSciences.
    15. Dawood MAMOON, 2017. "Can micro credit schemes be introduced by formal banking sector?," Journal of Economics Library, KSP Journals, vol. 4(3), pages 359-371, September.
    16. Phim Runsinarith, 2014. "The impacts of microcredit on poverty reduction: evidence from Cambodian rural villages," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(2), pages 121-150, December.
    17. Philip Bond & Ashok Rai, 2008. "Borrower Runs," Center for Development Economics 2008-07, Department of Economics, Williams College.
    18. Luminita Postelnicu & Niels Hermes, 2018. "Microfinance Performance and Social Capital: A Cross-Country Analysis," Journal of Business Ethics, Springer, vol. 153(2), pages 427-445, December.
    19. Kieran Donaghue, 2004. "Microfinance in the Asia Pacific," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 18(1), pages 41-61, May.
    20. François Doligez, 2002. "Microfinance et dynamiques économiques : quels effets après dix ans d'innovations financières ?," Revue Tiers Monde, Programme National Persée, vol. 43(172), pages 783-808.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col070:10994. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.