Benchmarking Microfinance in Romania 2006-2007

This benchmarking report aims to determine trends in the evolution of the Romanian microfinance sector.

The microfinance sector in Romania is socially oriented and consists of MFIs that use a development and inclusion approach. Features include:

• Microentrepreneurs and start-up enterprises are not bankable;
• Banks target small and medium enterprises that are considered less risky than start–ups and microenterprises;
• One section of the microfinance sector is mature, efficient, operationally and financially self–sufficient, while another is composed of new, immature, technically lacking MFIs;
• MFI commercialization strategy is beginning to pay off;
• MFIs have shown increased geographical outreach, efficiency, productivity and profitability;
• Many MFIs are struggling to maintain their social orientation;
• Romania's accession to the European Union has brought about new challenges for the microfinance sector;
• Demand for financial services from micro and small enterprises has increased.

Finally, the achievement of the triple bottom line, through a continuous improvement of the quality of services and social responsibility will make the Romanian microfinance sector become European.