IDEAS home Printed from https://ideas.repec.org/a/vls/rojfme/v13y2025i1p145-155.html

Strategies For Risk Diversification In Microfinance Institutions And Their Impact On The Resilience Of The Sector In The Republic Of Moldova

Author

Listed:
  • POPA, Viorica

    (National Institute for Economic Research, AESM, Chisinau, Republic of Moldova)

Abstract

Microfinance institutions (MFIs) play a crucial role in promoting financial inclusion and supporting vulnerable groups in the Republic of Moldova. However, the sector faces multiple challenges related to credit risk concentration, liquidity fluctuations, regulatory pressures, and macroeconomic instability. This paper analyzes the strategies of risk diversification applied by MFIs and assesses their contribution to strengthening sectoral resilience. Particular attention is given to the impact of innovative financing mechanisms, such as blended finance and guarantee schemes, in reducing vulnerability to external shocks. Empirical evidence from the Moldovan microfinance market indicates that institutions with a diversified risk management framework demonstrate higher financial stability, lower default rates, and greater adaptability to crises. The findings suggest that fostering risk diversification strategies not only enhances the sustainability of microfinance institutions but also contributes to the resilience of the national financial system as a whole. The article was developed within the framework of Subprogram 030101 „Strengthening the resilience, competitiveness, and sustainability of the economy of the Republic of Moldova in the context of the accession process to the European Union†, institutional funding.

Suggested Citation

  • POPA, Viorica, 2025. "Strategies For Risk Diversification In Microfinance Institutions And Their Impact On The Resilience Of The Sector In The Republic Of Moldova," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 13(1), pages 145-155, October.
    • Handle: RePEc:vls:rojfme:v:13:y:2025:i:1:p:145-155
    DOI: https://doi.org/10.65672/jfme.2025.1.13
    as

    Download full text from publisher

    File URL: http://www.icfm.ro/RePEc/vls/vls_pdf_jfme/vol13i1p145-155.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.65672/jfme.2025.1.13?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    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:vls:rojfme:v:13:y:2025:i:1:p:145-155. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Daniel Mateescu (email available below). General contact details of provider: https://edirc.repec.org/data/cfiarro.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.