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Survey of Microfinance Controversies and Challenges

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  • Janda, Karel
  • Zetek, Pavel

Abstract

This survey article provides a brief but comprehensive overview of microfinance academic literature with emphasis on recent innovations, trends and efficiency. In particular, we focus on controversial issues of microfinance, such as commercialization, regulation, interest rate policy and the balance between outreach and performance of MFIs. In summary, the findings of the reviewed literature underline the great improvement in the microfinance field that, however, has not reached its full potential yet. At the same time, we outline potential risks and drawbacks which are being discovered along the way of microfinance development and maturing, many of which still waiting for more rigorous scholarly examination. The paper also contains an illustrative econometric model of the relation between social and financial efficiency.

Suggested Citation

  • Janda, Karel & Zetek, Pavel, 2014. "Survey of Microfinance Controversies and Challenges," MPRA Paper 56657, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:56657
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    References listed on IDEAS

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    Cited by:

    1. Harmincova, Zuzana & Janda, Karel, 2014. "Microfinance around the world – regional SWOT analysis," MPRA Paper 58171, University Library of Munich, Germany.

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    More about this item

    Keywords

    Microfinance; microcredit; efficiency; mission drift;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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