Microfinance in the Developing Countries: A Perspective of Financial and Economic Sustainability (Il Sistema di Offerta Delle Organizzazioni di Microfinanza Nei Paesi in Via di Sviluppo: Una Prospettiva di Sostenibilità Economico-Finanziaria)
Rivista Italiana di Ragioneria e di Economia Aziendale (Rirea), No. 5/6, pp. 308-324, May-June, 2007
Posted: 12 Jan 2012 Last revised: 6 Jun 2012
Date Written: May 1, 2007
Microfinance has evolved as an economic development approach intended to benefit low-income people. The term refers to the provision of financial services to low-income clients. The first section of this paper describes the role of microfinance sustainability as a necessary precondition for the stability and permanence of the financial system. Sustainable microfinance models demonstrate that formal institutions can deliver services profitably at the local level, challenging the assumption that subsidies are required for microfinance in developing countries. The second section aims to analyze the categories of products and services provided by microfinance institutions. A commercial approach argued for the delivery of services at a scale and cost commensurate with the needs and ability of the market for which they are intended.
Keywords: microfinance, sustainability, micro-loan, informal financial sector, informal borrowers, group lending
JEL Classification: G01, G20, G21, G23, K02, M01, M02, M10, M15
Suggested Citation: Suggested Citation