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Myths in microfinance

Author

Listed:
  • Roy Mersland

    (UIA - University of Agder)

  • R Øystein Strøm

Abstract

Microfinancethe provision of financial services to the pooris high on the public agenda.We discuss and evaluate three myths regarding microfinance based on new data from rated microfinance institutions (MFIs). The first myth is that an efficient MFI needs to be shareholder owned; second that its governance should first and foremost address the potential conflict between owners and managers; and third that MFIs are drifting away from their poorer customers towards serving the wealthier. The data do not support any of these myths.We conclude that microfinance is a viable business model.

Suggested Citation

  • Roy Mersland & R Øystein Strøm, 2008. "Myths in microfinance," Post-Print hal-05222040, HAL.
    • Handle: RePEc:hal:journl:hal-05222040
    DOI: 10.1016/s1745-8862(08)03010-0
    Note: View the original document on HAL open archive server: https://hal.science/hal-05222040v1
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    References listed on IDEAS

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