Data collected by Microfinance Information Exchange (MIX), the US-based nonprofit data provider, contradicts the idea that the commercialization of microfinance is increasing the vulnerability of low-income households  . It indicates that high-yield, high-return microfinance institutions (MFIs) that have had adverse impacts on clients are the exception while the majority of clients borrow from MFIs that realize less than 30 percent return on equity. In fact, returns on assets have historically been higher for nonprofit institutions than those of commercial institutions. The data is based on indicators of the profitability of approximately 1,750 institutions over the course of seven years.
By Jacqueline Foelster, Research Associate
About Microfinance Information Exchange (MIX): Established in 2002, Microfinance Information Exchange (MIX) is a nonprofit organization with headquarters in Washington, DC, and regional offices in Peru, Senegal, India and Indonesia. MIX provides detailed financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators, donor organizations and investors in microfinance. MIX was founded by CGAP (Consultative Group to Assist the Poor) and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, International Fund for Agricultural Development (IFAD) and the Bill & Melinda Gates Foundation.
Sources and Additional Resources:
 Microfinance Information Exchange (MIX), http://www.themix.org/publications/microbanking-bulletin/2011/03/myths-and-reality-cost-and-profitability-microfinance
 MicroCapital.org Brief, January 10, 2011, “Founder of Grameen Bank and Nobel Peace Prize Winner Dr Muhammad Yunus Speaks Out Against the Commercialization of Microfinance Institutions (MFIs)”, http://www.microcapital.org/microcapital-brief-founder-of-grameen-bank-and-nobel-peace-prize-winner-dr-muhammad-yunus-speaks-out-against-the-commercialization-of-microfinance-institutions-mfis/
MicroCapital.org Brief, March 15, 2011, “Microfinance Information Exchange (MIX) Updates Review of Yunus’s Classification of Interest Rates, Argues Against Interest Rate Caps”, http://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-updates-review-of-yunuss-classification-of-interest-rates-argues-against-interest-rate-caps/
MicroCapital Microfinance Universe Profile: Microfinance Information Exchange (MIX), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Information+Exchange+%28MIX%29
Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/