Managing Credit Risk in Microfinance

Managing Credit Risk in Microfinance

Enda Inter-Arabe (ENDA), a market-leading microfinance institution (MFI) in Tunisia, was one of the first MFIs affected by a repayment crisis linked to the so-called Arab Spring. However, rather than spiral out of control, ENDA took quick steps to limit the damage while demonstrating an unwavering commitment to its clients. Today, International Finance Corporation (IFC) is helping ENDA remain at the vanguard of regional MFIs through the adoption of advanced risk-management practices. This report highlights the lessons learned from the crisis, explores the nuances of effective credit risk management, and shows how MFIs like ENDA can remain ahead of the curve in the years to come.

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Bibliographic Details
Main Author: Leonard, Matt
Format: Brief biblioteca
Language:English
en_US
Published: International Finance Corporation, Washington, DC 2013-05
Subjects:ACCESS TO FINANCE, ADVISORY SERVICES, APPROVAL PROCESS, ARREARS, BANKS, BRANCH, BRANCHES, BUSINESS DEVELOPMENT, BUSINESS UNIT, CREDIT POLICY, CREDIT PORTFOLIO, CREDIT PRODUCTS, CREDIT RISK, CREDIT SCORING, CREDIT UNDERWRITING, CUSTOMER RELATIONSHIPS, DISBURSEMENTS, DIVIDENDS, ECONOMIC GROWTH, EMPLOYERS, EXPANSION, FINANCES, FINANCIAL ANALYSES, FINANCIAL ANALYSIS, FINANCIAL INSTITUTIONS, GRACE PERIODS, HOUSEHOLD INCOME, HOUSEHOLDS, INFLATION, INFORMATION SYSTEM, LIQUIDITY, LIQUIDITY RISKS, LOAN, LOAN AMOUNT, LOAN APPRAISAL, LOAN DEFAULTS, LOAN DELINQUENCIES, LOAN FACILITIES, LOAN OFFICERS, LOAN PORTFOLIO, LOAN PRODUCT, LOAN SIZE, LOAN VOLUMES, MFI, MFIS, MICRO-CREDIT, MICRO-ENTREPRENEUR, MICRO-ENTREPRENEURS, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE PROGRAM, MICROFINANCE SECTOR, NEGOTIATION, NONPERFORMING LOANS, OUTREACH, OVERDUE LOANS, PORTFOLIO QUALITY, PREDICTIVE CREDIT-SCORING, REFUGEES, REPAYMENT, REPAYMENT CRISIS, REPAYMENTS, RISK MANAGEMENT, SALARIES, SOCIAL DEVELOPMENT, START-UP, TURNOVER, UNEMPLOYMENT,
Online Access:http://documents.worldbank.org/curated/en/2013/05/18203368/managing-credit-risk-microfinance-challenges-wake-arab-spring
https://hdl.handle.net/10986/22616
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Summary:Enda Inter-Arabe (ENDA), a market-leading microfinance institution (MFI) in Tunisia, was one of the first MFIs affected by a repayment crisis linked to the so-called Arab Spring. However, rather than spiral out of control, ENDA took quick steps to limit the damage while demonstrating an unwavering commitment to its clients. Today, International Finance Corporation (IFC) is helping ENDA remain at the vanguard of regional MFIs through the adoption of advanced risk-management practices. This report highlights the lessons learned from the crisis, explores the nuances of effective credit risk management, and shows how MFIs like ENDA can remain ahead of the curve in the years to come.

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