The Microfinance Information Exchange (MIX) has released a paper by researcher Adrian Gonzalez entitled “Is Microfinance Growing Too Fast?” The paper analyzes data from 821 microfinance institutions (MFIs) for the period 2000 to 2008. The paper “investigates the relevance of a strictly growth-centered analysis for understanding microfinance institution (MFI) portfolio quality” [1].
The findings of the study were that: high growth rates among MFIs are not related to portfolio quality, MFIs grow more by adding more branches rather than adding more borrowers in each branch, and poor portfolio quality is correlated with large numbers of borrowers and several other factors [1]. The paper can be found in full at the MIX website at: http://www.themix.org/publications/microfinance-growing-too-fast.
By Julia Korn, 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. It is a global, web-based, microfinance information platform. MIX provides detailed financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators and donor organizations and investors in microfinance. MIX Market currently provides data on approximately 1800 MFIs and 100 investors. 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:
[1] The MIX Market. “Is Microfinance Growing Too Fast?” by Adrian Gonzalez in June 2010. http://www.themix.org/publications/microfinance-growing-too-fast.
MicroCapital Universe. Microfinance Information Exchange (MIX). https://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 https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROFINANCE PAPER WRAP-UP: “Mobile Money, Interoperability and Financial Inclusion;” by Markus K Brunnermeier et al; published by National Bureau of Economic Research (NBER)
- MICROCAPITAL BRIEF: Arnur Credit of Kazakhstan Borrows $3.3m from Grameen Crédit Agricole to Expand Access to Microfinance
- MICROFINANCE PAPER WRAP-UP: “Mind the Gap in Financial Inclusion! Microcredit Institutions Fieldwork in Peru;” by Pilar Lopez-Sancheza, Elena Urquia-Grande
- MICROFINANCE PAPER WRAP-UP: “Climate Risk and Financial Inclusion: A Regulatory Perspective on Risks and Opportunities;” by Peter Knaack, Peter Zetterli
- MICROFINANCE PAPER WRAP-UP: “Land Titling and Microcredit in Cambodia: Examining the Reality of Hernando de Soto’s ‘Three Steps to Heaven,’” by Milford Bateman
