MICROFINANCE PUBLICATION ROUND-UP: Microfinance Product Diversification, Over-indebtedness in Kosovo, Social Inclusion

“Making Microfinance Work: Managing Product Diversification” by Cheryl Frankiewicz, Craig Churchill; published by the International Labour Organization (ILO); December 2011; 612 pages; available for a fee at http://www.ilo.org/global/publications/ilo-bookstore/order-online/books/… 

Designed for middle and senior managers at microfinance institutions (MFIs), this book reviews various product options, explores how to combine product menus to serve specific market segments and discusses strategies on managing partnerships and overcoming the challenges of managing a diverse product portfolio. The book suggests specific actions to manage diversification including adapting institutional culture, redistributing responsibilities, empowering staff, communicating with clients, reengineering systems and managing change in general [1].

“Indebtedness of Microcredit Clients in Kosovo” by Justyna Pytkowska, Sylvia Spannuth; published by Finance in Motion and the Microfinance Centre (MFC); December 2011; 10 pages; available at http://www.microfinancegateway.org/gm/document-1.9.55745/EFSE%20DF_OI-St…

This paper outlines the results of a study commissioned by the technical assistance arm of the European Fund for Southeast Europe (EFSE), which is known as the EFSE Development Facility, to gain an understanding of the level of indebtedness and underlying borrowing patterns of microcredit clients in Kosovo, shed light to the factors that affect over-indebtedness and provide recommendations on how to address the issue. Two indicators were used to measure over-indebtedness: a “net indebtedness index” and clients’ perceptions of debt burden. The study recommends transparency about credit operations, financial education and other responsible lending practices [2].

“Alternative Banking and Social Inclusion” by Kurt von Mettenheim, Olivier Butzbach; published by the Institute for Money, Techonology and Financial Inclusion; December 2011; available at http://blog.imtfi.uci.edu/2011/12/alternative-banking-and-social_05.html

In a blog post on the website of the Institute for Money, Techonology and Financial Inclusion (IMTFI), Kurt von Mettenheim and Olivier Butzbach discuss how public savings banks can provide new channels for social policies, focusing on the findings of IMTFI research on the modernization of public savings banks and central banking in Brazil. The authors discuss idea that finance “increases inequality in a setting of high inequality and high financial returns,” using data from Sao Paolo as an example. The authors also suggest that “private bank-based strategies are not enough to counter underdevelopment and exclusion”, and they further explore alternatives through a case study of Caixa Economica Federal, a public savings bank in Brazil [3].

By Kristha Abores, Research Associate

Sources and Additional Resources:

[1] “Making Microfinance Work: Managing Product Diversification,” http://www.ilo.org/global/publications/ilo-bookstore/order-online/books/…

[2] “Indebtedness of Microcredit Clients in Kosovo,” http://www.microfinancegateway.org/p/site/m/template.rc/1.9.55745/

[3] “Alternative Banking and Social Inclusion,” http://blog.imtfi.uci.edu/2011/12/alternative-banking-and-social_05.html

MicroCapital Universe Profile: International Labour Organization (ILO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int…

MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Eur…

MicroCapital Universe Profile: Finance in Motion, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fin…

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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