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Asymmetric Finance: Issues in Microfinance

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  • Lash, Nicholas A.

Abstract

This study surveys microfinance institutions (MFI) which are designed to provide loans and other financial services to the poor, particularly women. Although innovations have reduced loan defaults, most MFIs are losing money. The most profitable MFIs target the upper-end of the poor thereby raising concerns of mission drift. Because profitable MFIs tend to be the largest and most experienced, there is hope that growth over time will lead to self-sufficiency. Increasingly, MFIs are evolving into full-service entities which are raising increasing amounts of commercial funds.

Suggested Citation

  • Lash, Nicholas A., 2008. "Asymmetric Finance: Issues in Microfinance," The Journal of Economic Asymmetries, Elsevier, vol. 5(1), pages 93-107.
    • Handle: RePEc:eee:joecas:v:5:y:2008:i:1:p:93-107
    DOI: 10.1016/j.jeca.2008.01.008
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    References listed on IDEAS

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    1. Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December.
    2. Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2004. "Finance, Inequality, and Poverty: Cross-Country Evidence," NBER Working Papers 10979, National Bureau of Economic Research, Inc.
    3. Robert Cull & Asli Demirguç-Kunt & Jonathan Morduch, 2007. "Financial performance and outreach: a global analysis of leading microbanks," Economic Journal, Royal Economic Society, vol. 117(517), pages 107-133, February.
    4. repec:wbk:wbpubs:14874 is not listed on IDEAS
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    More about this item

    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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