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Microfinance Activities and Factors Affecting the Growth of Microfinance in Developed & Developing Countries


  • Muhammad Sajid Saeed


Microfinance Institutions (MFIs) have served millions of poor people around the world by offering them small loans with easy repayment terms. This review paper highlights the microfinance activities performed by the MFIs and also indicates the critical factors that hinder the growth of microfinance in developing and developed nations. It is found that the foremost factors obstructing the adoption of microfinance are: lack of financial stability, uncontrolled growth, cultural and value impede, systematic frauds, bureaucratic obstacles, state intervention, methodological defects, and shortage of credit rating agencies.

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  • Muhammad Sajid Saeed, 2014. "Microfinance Activities and Factors Affecting the Growth of Microfinance in Developed & Developing Countries," International Finance and Banking, Macrothink Institute, vol. 1(1), pages 39-50, June.
  • Handle: RePEc:mth:ifb888:v:1:y:2014:i:1:p:39-50

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    References listed on IDEAS

    1. Hartarska, Valentina & Nadolnyak, Denis, 2008. "An Impact Analysis of Microfinance in Bosnia and Herzegovina," World Development, Elsevier, vol. 36(12), pages 2605-2619, December.
    2. Abhijit V. Banerjee & Esther Duflo, 2009. "The Experimental Approach to Development Economics," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 151-178, May.
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