Paper
Worldwide Distribution and Performance of Microfinance Institutions
A survey of microfinance performance in developing countries
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This brief summarizes the results of a survey that sought to answer the following questions:
- How many microfinance institutions (MFIs) exist in the developing world?
- How well are they performing?
- What is their role in household economies?
- Are they using their funds efficiently?
The survey:
- Used information from MFIs in Asia, Africa and Latin America;
- Adopted an average loan size of US $1,000 as the ceiling in defining MFIs;
- Reviewed publications on microfinance;
- Looked at MFIs that have some kind of international support.
The survey finds:
- 1,478 MFIs that reach 54 million members, 44 million savers and around 23 million borrowers;
- A total savings volume of US $12 billion and a total outstanding loan volume of US $18 billion;
- A range of microfinance models in use;
- Evidence that a minimum of political and economic stability is necessary for MFIs to develop;
- Diversity of technology and legal status amongst MFIs.
The survey also presents findings regarding:
- MFI activity in terms of volume;
- The number of MFIs and their clients;
- Volume of savings and loan distribution and repayment.
The paper concludes that although there are a multitude of MFIs that offer financial services to 54 million households, increasing the size and productivity of each institution could result in better outreach.
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