Role reversal: Public and Private Funders in microfinance

Abstract

The rapid growth of foreign private lending to microfinance institutions (MFIs) in the past several years has led to a surprising reversal of roles between government-owned development agencies and private lenders. Development institutions [International Financial Institutions (IFIs)] are concentrating their loans in the strongest MFIs, leaving private lenders to look for opportunities among smaller, riskier borrowers. Development institutions are “crowding” private lenders out of the best MFIs.

Citation

Abrams, J. and von Stauffenberg, D. (2009), "Role reversal: Public and Private Funders in microfinance", Watkins, T.A. and Hicks, K. (Ed.) Moving Beyond Storytelling: Emerging Research in Microfinance (Contemporary Studies in Economic and Financial Analysis, Vol. 92), Emerald Group Publishing Limited, Leeds, pp. 81-107. https://doi.org/10.1108/S1569-3759(2009)0000092006