Microfinance Meets the Market
Microfinance institutions have proved the possibility of providing reliable banking services to poor customers. Their second aim is to do so in a commercially-viable way. This paper analyzes the tensions and opportunities of microfinance as it embraces the market, drawing on a data set that includes 346 of the world's leading microfinance institutions and covers nearly 18 million active borrowers. The data show remarkable successes in maintaining high rates of loan repayment, but the data also suggest that profit-maximizing investors would have limited interest in most of the institutions that are focusing on the poorest customers and women. Those institutions, as a group, charge their customers the highest fees in the sample but also face particularly high transaction costs, in part due to small transaction sizes. Innovations to overcome the well-known problems of asymmetric information in financial markets were a triumph, but further innovation is needed to overcome the challenges of high costs.
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dig-okr-109866690 |
|---|---|
| record_format |
koha |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English |
| topic |
ACCESS TO BANKS ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCOUNTING ACCOUNTING STANDARDS AFFILIATE AGRICULTURAL ECONOMICS ASYMMETRIC INFORMATION AUTOMATED TELLER MACHINES AVERAGE INTEREST AVERAGE INTEREST RATE BANK BORROWERS BANK CREDIT BANK CUSTOMERS BANK LOAN BANK POLICY BANKING SERVICES BORROWER BORROWING BUSINESS LOANS BUSINESS SCHOOLS CALCULATIONS CAPITAL COSTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CASH FLOWS COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL INVESTMENT CONSUMER CONSUMER LOANS CONTRIBUTIONS COST OF CAPITAL CREDIT ACCESS CREDIT COOPERATIVES CREDIT MARKETS CREDIT UNION CREDIT UNIONS CUSTOMER BASE DEBIT CARDS DEBT DEFAULT RATES DEFAULTERS DEPOSIT DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DONOR SUPPORT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT ENTREPRENEURS EXCHANGE RATE FACE VALUE FAMILIES FAMILY MEMBERS FARM ENTERPRISES FARMERS FEMALE BORROWERS FINANCIAL ACCESS FINANCIAL DATA FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL LIVES FINANCIAL MAINSTREAM FINANCIAL MARKETS FINANCIAL MEASURES FINANCIAL OPTIONS FINANCIAL PERFORMANCE FINANCIAL SELF - SUFFICIENCY FINANCIAL SELF-SUFFICIENCY FINANCIAL STATEMENTS FINANCIAL STRUCTURE FINANCIAL SUSTAINABILITY FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN CAPITAL FOREIGN DONORS FOREIGN INVESTMENT FORMAL FINANCIAL SERVICES FUTURE LOANS GENDER GENDER EQUALITY GENERAL PUBLIC GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBALIZATION GOVERNMENT BANKS GROUP LENDING GROUP-LENDING GROUP-LENDING CONTRACTS HANDICRAFTS HIDDEN SUBSIDIES HIGH INTEREST RATES HOLDINGS HOUSEHOLD INCOME HOUSEHOLDS IMPLICIT SUBSIDIES IMPLICIT SUBSIDY INCOME DISTRIBUTION INCOME LEVEL INCOMES INFLATION INITIAL PUBLIC OFFERING INSENSITIVITY INSTALLMENTS INSURANCE INTEREST INCOME INTEREST RATE INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL STANDARDS INVESTING IPO JOINT LIABILITY LENDING INTEREST RATE LIQUIDITY LOAN LOAN APPLICANTS LOAN DECISION LOAN LOSS PROVISIONS LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SIZE LOAN SIZES LOCAL CURRENCY LONG-TERM LIABILITIES LOW COST LOW-INCOME LOW-INCOME CUSTOMERS LOW-INCOME PEOPLE MARKET DATA MFI MFIS MICRO-CREDIT MICRO-FINANCE MICRO-LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LENDING MICROFINANCE LOANS MICROFINANCE SECTOR MONETARY FUND MONEYLENDER MONEYLENDERS MUTUAL FUND NON-PERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EXPENSES OUTREACH OUTSTANDING BALANCE POLITICAL RISK POOR BORROWERS POOR COMMUNITIES PORTFOLIO QUALITY POVERTY LEVELS PRIME RATE PRIVATE INVESTORS PRIVATE SECTOR BANKS PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC ECONOMICS PUBLIC POLICY PURCHASING POWER PURCHASING POWER PARITY RECENT LOANS REPAYMENT INCENTIVES REPAYMENT RATES RESERVE RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURN ON EQUITY RETURNS RURAL BANK RURAL BANKS RURAL FINANCIAL MARKETS SALE SAVINGS SAVINGS DEPOSITS SAVINGS PRODUCTS SENIOR SMALL BUSINESSES SMALL LOANS SOCIAL MISSIONS SOCIALLY RESPONSIBLE INVESTORS SOFT LOANS SOLIDARITY GROUP LENDING START-UP STATE BANKS SUBSIDIZATION TAX TIME DEPOSITS TOTAL COSTS TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS VALUABLE VALUE ADDED TAXES VILLAGE VILLAGES WORTH ACCESS TO BANKS ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCOUNTING ACCOUNTING STANDARDS AFFILIATE AGRICULTURAL ECONOMICS ASYMMETRIC INFORMATION AUTOMATED TELLER MACHINES AVERAGE INTEREST AVERAGE INTEREST RATE BANK BORROWERS BANK CREDIT BANK CUSTOMERS BANK LOAN BANK POLICY BANKING SERVICES BORROWER BORROWING BUSINESS LOANS BUSINESS SCHOOLS CALCULATIONS CAPITAL COSTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CASH FLOWS COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL INVESTMENT CONSUMER CONSUMER LOANS CONTRIBUTIONS COST OF CAPITAL CREDIT ACCESS CREDIT COOPERATIVES CREDIT MARKETS CREDIT UNION CREDIT UNIONS CUSTOMER BASE DEBIT CARDS DEBT DEFAULT RATES DEFAULTERS DEPOSIT DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DONOR SUPPORT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT ENTREPRENEURS EXCHANGE RATE FACE VALUE FAMILIES FAMILY MEMBERS FARM ENTERPRISES FARMERS FEMALE BORROWERS FINANCIAL ACCESS FINANCIAL DATA FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL LIVES FINANCIAL MAINSTREAM FINANCIAL MARKETS FINANCIAL MEASURES FINANCIAL OPTIONS FINANCIAL PERFORMANCE FINANCIAL SELF - SUFFICIENCY FINANCIAL SELF-SUFFICIENCY FINANCIAL STATEMENTS FINANCIAL STRUCTURE FINANCIAL SUSTAINABILITY FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN CAPITAL FOREIGN DONORS FOREIGN INVESTMENT FORMAL FINANCIAL SERVICES FUTURE LOANS GENDER GENDER EQUALITY GENERAL PUBLIC GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBALIZATION GOVERNMENT BANKS GROUP LENDING GROUP-LENDING GROUP-LENDING CONTRACTS HANDICRAFTS HIDDEN SUBSIDIES HIGH INTEREST RATES HOLDINGS HOUSEHOLD INCOME HOUSEHOLDS IMPLICIT SUBSIDIES IMPLICIT SUBSIDY INCOME DISTRIBUTION INCOME LEVEL INCOMES INFLATION INITIAL PUBLIC OFFERING INSENSITIVITY INSTALLMENTS INSURANCE INTEREST INCOME INTEREST RATE INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL STANDARDS INVESTING IPO JOINT LIABILITY LENDING INTEREST RATE LIQUIDITY LOAN LOAN APPLICANTS LOAN DECISION LOAN LOSS PROVISIONS LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SIZE LOAN SIZES LOCAL CURRENCY LONG-TERM LIABILITIES LOW COST LOW-INCOME LOW-INCOME CUSTOMERS LOW-INCOME PEOPLE MARKET DATA MFI MFIS MICRO-CREDIT MICRO-FINANCE MICRO-LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LENDING MICROFINANCE LOANS MICROFINANCE SECTOR MONETARY FUND MONEYLENDER MONEYLENDERS MUTUAL FUND NON-PERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EXPENSES OUTREACH OUTSTANDING BALANCE POLITICAL RISK POOR BORROWERS POOR COMMUNITIES PORTFOLIO QUALITY POVERTY LEVELS PRIME RATE PRIVATE INVESTORS PRIVATE SECTOR BANKS PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC ECONOMICS PUBLIC POLICY PURCHASING POWER PURCHASING POWER PARITY RECENT LOANS REPAYMENT INCENTIVES REPAYMENT RATES RESERVE RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURN ON EQUITY RETURNS RURAL BANK RURAL BANKS RURAL FINANCIAL MARKETS SALE SAVINGS SAVINGS DEPOSITS SAVINGS PRODUCTS SENIOR SMALL BUSINESSES SMALL LOANS SOCIAL MISSIONS SOCIALLY RESPONSIBLE INVESTORS SOFT LOANS SOLIDARITY GROUP LENDING START-UP STATE BANKS SUBSIDIZATION TAX TIME DEPOSITS TOTAL COSTS TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS VALUABLE VALUE ADDED TAXES VILLAGE VILLAGES WORTH |
| spellingShingle |
ACCESS TO BANKS ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCOUNTING ACCOUNTING STANDARDS AFFILIATE AGRICULTURAL ECONOMICS ASYMMETRIC INFORMATION AUTOMATED TELLER MACHINES AVERAGE INTEREST AVERAGE INTEREST RATE BANK BORROWERS BANK CREDIT BANK CUSTOMERS BANK LOAN BANK POLICY BANKING SERVICES BORROWER BORROWING BUSINESS LOANS BUSINESS SCHOOLS CALCULATIONS CAPITAL COSTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CASH FLOWS COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL INVESTMENT CONSUMER CONSUMER LOANS CONTRIBUTIONS COST OF CAPITAL CREDIT ACCESS CREDIT COOPERATIVES CREDIT MARKETS CREDIT UNION CREDIT UNIONS CUSTOMER BASE DEBIT CARDS DEBT DEFAULT RATES DEFAULTERS DEPOSIT DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DONOR SUPPORT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT ENTREPRENEURS EXCHANGE RATE FACE VALUE FAMILIES FAMILY MEMBERS FARM ENTERPRISES FARMERS FEMALE BORROWERS FINANCIAL ACCESS FINANCIAL DATA FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL LIVES FINANCIAL MAINSTREAM FINANCIAL MARKETS FINANCIAL MEASURES FINANCIAL OPTIONS FINANCIAL PERFORMANCE FINANCIAL SELF - SUFFICIENCY FINANCIAL SELF-SUFFICIENCY FINANCIAL STATEMENTS FINANCIAL STRUCTURE FINANCIAL SUSTAINABILITY FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN CAPITAL FOREIGN DONORS FOREIGN INVESTMENT FORMAL FINANCIAL SERVICES FUTURE LOANS GENDER GENDER EQUALITY GENERAL PUBLIC GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBALIZATION GOVERNMENT BANKS GROUP LENDING GROUP-LENDING GROUP-LENDING CONTRACTS HANDICRAFTS HIDDEN SUBSIDIES HIGH INTEREST RATES HOLDINGS HOUSEHOLD INCOME HOUSEHOLDS IMPLICIT SUBSIDIES IMPLICIT SUBSIDY INCOME DISTRIBUTION INCOME LEVEL INCOMES INFLATION INITIAL PUBLIC OFFERING INSENSITIVITY INSTALLMENTS INSURANCE INTEREST INCOME INTEREST RATE INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL STANDARDS INVESTING IPO JOINT LIABILITY LENDING INTEREST RATE LIQUIDITY LOAN LOAN APPLICANTS LOAN DECISION LOAN LOSS PROVISIONS LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SIZE LOAN SIZES LOCAL CURRENCY LONG-TERM LIABILITIES LOW COST LOW-INCOME LOW-INCOME CUSTOMERS LOW-INCOME PEOPLE MARKET DATA MFI MFIS MICRO-CREDIT MICRO-FINANCE MICRO-LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LENDING MICROFINANCE LOANS MICROFINANCE SECTOR MONETARY FUND MONEYLENDER MONEYLENDERS MUTUAL FUND NON-PERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EXPENSES OUTREACH OUTSTANDING BALANCE POLITICAL RISK POOR BORROWERS POOR COMMUNITIES PORTFOLIO QUALITY POVERTY LEVELS PRIME RATE PRIVATE INVESTORS PRIVATE SECTOR BANKS PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC ECONOMICS PUBLIC POLICY PURCHASING POWER PURCHASING POWER PARITY RECENT LOANS REPAYMENT INCENTIVES REPAYMENT RATES RESERVE RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURN ON EQUITY RETURNS RURAL BANK RURAL BANKS RURAL FINANCIAL MARKETS SALE SAVINGS SAVINGS DEPOSITS SAVINGS PRODUCTS SENIOR SMALL BUSINESSES SMALL LOANS SOCIAL MISSIONS SOCIALLY RESPONSIBLE INVESTORS SOFT LOANS SOLIDARITY GROUP LENDING START-UP STATE BANKS SUBSIDIZATION TAX TIME DEPOSITS TOTAL COSTS TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS VALUABLE VALUE ADDED TAXES VILLAGE VILLAGES WORTH ACCESS TO BANKS ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCOUNTING ACCOUNTING STANDARDS AFFILIATE AGRICULTURAL ECONOMICS ASYMMETRIC INFORMATION AUTOMATED TELLER MACHINES AVERAGE INTEREST AVERAGE INTEREST RATE BANK BORROWERS BANK CREDIT BANK CUSTOMERS BANK LOAN BANK POLICY BANKING SERVICES BORROWER BORROWING BUSINESS LOANS BUSINESS SCHOOLS CALCULATIONS CAPITAL COSTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CASH FLOWS COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL INVESTMENT CONSUMER CONSUMER LOANS CONTRIBUTIONS COST OF CAPITAL CREDIT ACCESS CREDIT COOPERATIVES CREDIT MARKETS CREDIT UNION CREDIT UNIONS CUSTOMER BASE DEBIT CARDS DEBT DEFAULT RATES DEFAULTERS DEPOSIT DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DONOR SUPPORT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT ENTREPRENEURS EXCHANGE RATE FACE VALUE FAMILIES FAMILY MEMBERS FARM ENTERPRISES FARMERS FEMALE BORROWERS FINANCIAL ACCESS FINANCIAL DATA FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL LIVES FINANCIAL MAINSTREAM FINANCIAL MARKETS FINANCIAL MEASURES FINANCIAL OPTIONS FINANCIAL PERFORMANCE FINANCIAL SELF - SUFFICIENCY FINANCIAL SELF-SUFFICIENCY FINANCIAL STATEMENTS FINANCIAL STRUCTURE FINANCIAL SUSTAINABILITY FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN CAPITAL FOREIGN DONORS FOREIGN INVESTMENT FORMAL FINANCIAL SERVICES FUTURE LOANS GENDER GENDER EQUALITY GENERAL PUBLIC GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBALIZATION GOVERNMENT BANKS GROUP LENDING GROUP-LENDING GROUP-LENDING CONTRACTS HANDICRAFTS HIDDEN SUBSIDIES HIGH INTEREST RATES HOLDINGS HOUSEHOLD INCOME HOUSEHOLDS IMPLICIT SUBSIDIES IMPLICIT SUBSIDY INCOME DISTRIBUTION INCOME LEVEL INCOMES INFLATION INITIAL PUBLIC OFFERING INSENSITIVITY INSTALLMENTS INSURANCE INTEREST INCOME INTEREST RATE INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL STANDARDS INVESTING IPO JOINT LIABILITY LENDING INTEREST RATE LIQUIDITY LOAN LOAN APPLICANTS LOAN DECISION LOAN LOSS PROVISIONS LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SIZE LOAN SIZES LOCAL CURRENCY LONG-TERM LIABILITIES LOW COST LOW-INCOME LOW-INCOME CUSTOMERS LOW-INCOME PEOPLE MARKET DATA MFI MFIS MICRO-CREDIT MICRO-FINANCE MICRO-LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LENDING MICROFINANCE LOANS MICROFINANCE SECTOR MONETARY FUND MONEYLENDER MONEYLENDERS MUTUAL FUND NON-PERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EXPENSES OUTREACH OUTSTANDING BALANCE POLITICAL RISK POOR BORROWERS POOR COMMUNITIES PORTFOLIO QUALITY POVERTY LEVELS PRIME RATE PRIVATE INVESTORS PRIVATE SECTOR BANKS PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC ECONOMICS PUBLIC POLICY PURCHASING POWER PURCHASING POWER PARITY RECENT LOANS REPAYMENT INCENTIVES REPAYMENT RATES RESERVE RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURN ON EQUITY RETURNS RURAL BANK RURAL BANKS RURAL FINANCIAL MARKETS SALE SAVINGS SAVINGS DEPOSITS SAVINGS PRODUCTS SENIOR SMALL BUSINESSES SMALL LOANS SOCIAL MISSIONS SOCIALLY RESPONSIBLE INVESTORS SOFT LOANS SOLIDARITY GROUP LENDING START-UP STATE BANKS SUBSIDIZATION TAX TIME DEPOSITS TOTAL COSTS TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS VALUABLE VALUE ADDED TAXES VILLAGE VILLAGES WORTH Cull, Robert Demirgüç-Kunt, Asli Morduch, Jonathan Microfinance Meets the Market |
| description |
Microfinance institutions have proved
the possibility of providing reliable banking services to
poor customers. Their second aim is to do so in a
commercially-viable way. This paper analyzes the tensions
and opportunities of microfinance as it embraces the market,
drawing on a data set that includes 346 of the world's
leading microfinance institutions and covers nearly 18
million active borrowers. The data show remarkable
successes in maintaining high rates of loan repayment, but
the data also suggest that profit-maximizing investors would
have limited interest in most of the institutions that are
focusing on the poorest customers and women. Those
institutions, as a group, charge their customers the highest
fees in the sample but also face particularly high
transaction costs, in part due to small transaction sizes.
Innovations to overcome the well-known problems of
asymmetric information in financial markets were a triumph,
but further innovation is needed to overcome the challenges
of high costs. |
| topic_facet |
ACCESS TO BANKS ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCOUNTING ACCOUNTING STANDARDS AFFILIATE AGRICULTURAL ECONOMICS ASYMMETRIC INFORMATION AUTOMATED TELLER MACHINES AVERAGE INTEREST AVERAGE INTEREST RATE BANK BORROWERS BANK CREDIT BANK CUSTOMERS BANK LOAN BANK POLICY BANKING SERVICES BORROWER BORROWING BUSINESS LOANS BUSINESS SCHOOLS CALCULATIONS CAPITAL COSTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CASH FLOWS COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL INVESTMENT CONSUMER CONSUMER LOANS CONTRIBUTIONS COST OF CAPITAL CREDIT ACCESS CREDIT COOPERATIVES CREDIT MARKETS CREDIT UNION CREDIT UNIONS CUSTOMER BASE DEBIT CARDS DEBT DEFAULT RATES DEFAULTERS DEPOSIT DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DONOR SUPPORT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT ENTREPRENEURS EXCHANGE RATE FACE VALUE FAMILIES FAMILY MEMBERS FARM ENTERPRISES FARMERS FEMALE BORROWERS FINANCIAL ACCESS FINANCIAL DATA FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL LIVES FINANCIAL MAINSTREAM FINANCIAL MARKETS FINANCIAL MEASURES FINANCIAL OPTIONS FINANCIAL PERFORMANCE FINANCIAL SELF - SUFFICIENCY FINANCIAL SELF-SUFFICIENCY FINANCIAL STATEMENTS FINANCIAL STRUCTURE FINANCIAL SUSTAINABILITY FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN CAPITAL FOREIGN DONORS FOREIGN INVESTMENT FORMAL FINANCIAL SERVICES FUTURE LOANS GENDER GENDER EQUALITY GENERAL PUBLIC GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBALIZATION GOVERNMENT BANKS GROUP LENDING GROUP-LENDING GROUP-LENDING CONTRACTS HANDICRAFTS HIDDEN SUBSIDIES HIGH INTEREST RATES HOLDINGS HOUSEHOLD INCOME HOUSEHOLDS IMPLICIT SUBSIDIES IMPLICIT SUBSIDY INCOME DISTRIBUTION INCOME LEVEL INCOMES INFLATION INITIAL PUBLIC OFFERING INSENSITIVITY INSTALLMENTS INSURANCE INTEREST INCOME INTEREST RATE INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL STANDARDS INVESTING IPO JOINT LIABILITY LENDING INTEREST RATE LIQUIDITY LOAN LOAN APPLICANTS LOAN DECISION LOAN LOSS PROVISIONS LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SIZE LOAN SIZES LOCAL CURRENCY LONG-TERM LIABILITIES LOW COST LOW-INCOME LOW-INCOME CUSTOMERS LOW-INCOME PEOPLE MARKET DATA MFI MFIS MICRO-CREDIT MICRO-FINANCE MICRO-LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LENDING MICROFINANCE LOANS MICROFINANCE SECTOR MONETARY FUND MONEYLENDER MONEYLENDERS MUTUAL FUND NON-PERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EXPENSES OUTREACH OUTSTANDING BALANCE POLITICAL RISK POOR BORROWERS POOR COMMUNITIES PORTFOLIO QUALITY POVERTY LEVELS PRIME RATE PRIVATE INVESTORS PRIVATE SECTOR BANKS PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC ECONOMICS PUBLIC POLICY PURCHASING POWER PURCHASING POWER PARITY RECENT LOANS REPAYMENT INCENTIVES REPAYMENT RATES RESERVE RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURN ON EQUITY RETURNS RURAL BANK RURAL BANKS RURAL FINANCIAL MARKETS SALE SAVINGS SAVINGS DEPOSITS SAVINGS PRODUCTS SENIOR SMALL BUSINESSES SMALL LOANS SOCIAL MISSIONS SOCIALLY RESPONSIBLE INVESTORS SOFT LOANS SOLIDARITY GROUP LENDING START-UP STATE BANKS SUBSIDIZATION TAX TIME DEPOSITS TOTAL COSTS TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS VALUABLE VALUE ADDED TAXES VILLAGE VILLAGES WORTH |
| author |
Cull, Robert Demirgüç-Kunt, Asli Morduch, Jonathan |
| author_facet |
Cull, Robert Demirgüç-Kunt, Asli Morduch, Jonathan |
| author_sort |
Cull, Robert |
| title |
Microfinance Meets the Market |
| title_short |
Microfinance Meets the Market |
| title_full |
Microfinance Meets the Market |
| title_fullStr |
Microfinance Meets the Market |
| title_full_unstemmed |
Microfinance Meets the Market |
| title_sort |
microfinance meets the market |
| publisher |
World Bank, Washington, DC |
| publishDate |
2008-05 |
| url |
http://documents.worldbank.org/curated/en/2008/05/9473047/microfinance-meets-market https://hdl.handle.net/10986/6690 |
| work_keys_str_mv |
AT cullrobert microfinancemeetsthemarket AT demirguckuntasli microfinancemeetsthemarket AT morduchjonathan microfinancemeetsthemarket |
| _version_ |
1807155070538612736 |
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dig-okr-1098666902024-08-08T16:41:33Z Microfinance Meets the Market Cull, Robert Demirgüç-Kunt, Asli Morduch, Jonathan ACCESS TO BANKS ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS ACCOUNTING ACCOUNTING STANDARDS AFFILIATE AGRICULTURAL ECONOMICS ASYMMETRIC INFORMATION AUTOMATED TELLER MACHINES AVERAGE INTEREST AVERAGE INTEREST RATE BANK BORROWERS BANK CREDIT BANK CUSTOMERS BANK LOAN BANK POLICY BANKING SERVICES BORROWER BORROWING BUSINESS LOANS BUSINESS SCHOOLS CALCULATIONS CAPITAL COSTS CAPITAL INVESTMENT CAPITAL MARKET CAPITAL MARKETS CASH FLOWS COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL INVESTMENT CONSUMER CONSUMER LOANS CONTRIBUTIONS COST OF CAPITAL CREDIT ACCESS CREDIT COOPERATIVES CREDIT MARKETS CREDIT UNION CREDIT UNIONS CUSTOMER BASE DEBIT CARDS DEBT DEFAULT RATES DEFAULTERS DEPOSIT DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DONOR SUPPORT EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT ENTREPRENEURS EXCHANGE RATE FACE VALUE FAMILIES FAMILY MEMBERS FARM ENTERPRISES FARMERS FEMALE BORROWERS FINANCIAL ACCESS FINANCIAL DATA FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL LIVES FINANCIAL MAINSTREAM FINANCIAL MARKETS FINANCIAL MEASURES FINANCIAL OPTIONS FINANCIAL PERFORMANCE FINANCIAL SELF - SUFFICIENCY FINANCIAL SELF-SUFFICIENCY FINANCIAL STATEMENTS FINANCIAL STRUCTURE FINANCIAL SUSTAINABILITY FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN CAPITAL FOREIGN DONORS FOREIGN INVESTMENT FORMAL FINANCIAL SERVICES FUTURE LOANS GENDER GENDER EQUALITY GENERAL PUBLIC GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBALIZATION GOVERNMENT BANKS GROUP LENDING GROUP-LENDING GROUP-LENDING CONTRACTS HANDICRAFTS HIDDEN SUBSIDIES HIGH INTEREST RATES HOLDINGS HOUSEHOLD INCOME HOUSEHOLDS IMPLICIT SUBSIDIES IMPLICIT SUBSIDY INCOME DISTRIBUTION INCOME LEVEL INCOMES INFLATION INITIAL PUBLIC OFFERING INSENSITIVITY INSTALLMENTS INSURANCE INTEREST INCOME INTEREST RATE INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL STANDARDS INVESTING IPO JOINT LIABILITY LENDING INTEREST RATE LIQUIDITY LOAN LOAN APPLICANTS LOAN DECISION LOAN LOSS PROVISIONS LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS LOAN PRODUCTS LOAN REPAYMENT LOAN REPAYMENT RATES LOAN REPAYMENTS LOAN SIZE LOAN SIZES LOCAL CURRENCY LONG-TERM LIABILITIES LOW COST LOW-INCOME LOW-INCOME CUSTOMERS LOW-INCOME PEOPLE MARKET DATA MFI MFIS MICRO-CREDIT MICRO-FINANCE MICRO-LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LENDING MICROFINANCE LOANS MICROFINANCE SECTOR MONETARY FUND MONEYLENDER MONEYLENDERS MUTUAL FUND NON-PERFORMING LOANS OPERATING COST OPERATING COSTS OPERATING EXPENSES OUTREACH OUTSTANDING BALANCE POLITICAL RISK POOR BORROWERS POOR COMMUNITIES PORTFOLIO QUALITY POVERTY LEVELS PRIME RATE PRIVATE INVESTORS PRIVATE SECTOR BANKS PRODUCTIVITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC ECONOMICS PUBLIC POLICY PURCHASING POWER PURCHASING POWER PARITY RECENT LOANS REPAYMENT INCENTIVES REPAYMENT RATES RESERVE RESERVES RETAINED EARNINGS RETURN RETURN ON ASSETS RETURN ON EQUITY RETURNS RURAL BANK RURAL BANKS RURAL FINANCIAL MARKETS SALE SAVINGS SAVINGS DEPOSITS SAVINGS PRODUCTS SENIOR SMALL BUSINESSES SMALL LOANS SOCIAL MISSIONS SOCIALLY RESPONSIBLE INVESTORS SOFT LOANS SOLIDARITY GROUP LENDING START-UP STATE BANKS SUBSIDIZATION TAX TIME DEPOSITS TOTAL COSTS TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS VALUABLE VALUE ADDED TAXES VILLAGE VILLAGES WORTH Microfinance institutions have proved the possibility of providing reliable banking services to poor customers. Their second aim is to do so in a commercially-viable way. This paper analyzes the tensions and opportunities of microfinance as it embraces the market, drawing on a data set that includes 346 of the world's leading microfinance institutions and covers nearly 18 million active borrowers. The data show remarkable successes in maintaining high rates of loan repayment, but the data also suggest that profit-maximizing investors would have limited interest in most of the institutions that are focusing on the poorest customers and women. Those institutions, as a group, charge their customers the highest fees in the sample but also face particularly high transaction costs, in part due to small transaction sizes. Innovations to overcome the well-known problems of asymmetric information in financial markets were a triumph, but further innovation is needed to overcome the challenges of high costs. 2012-05-30T19:20:22Z 2012-05-30T19:20:22Z 2008-05 http://documents.worldbank.org/curated/en/2008/05/9473047/microfinance-meets-market https://hdl.handle.net/10986/6690 English Policy Research Working Paper No. 4630 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |