Archive for: microfinance investors

Towards a Definition of Responsible Finance: Day One of “Responsible Finance: Making it Work in Microfinance”

by Rafe Mazer: Tuesday, April 13, 2010

CGAP has been hosting a two-day online Virtual Conference “Responsible Finance: Making it Work in Microfinance” on April 12-13. The event is bringing together MFIs, policymakers, NGOs and individuals from across the world for a rapid-fire online debate and discussion.

Day one of the conference focused around the question “what is responsible finance, and why is it needed?” and featured guest moderators from four continents and nearly 300 participants commenting and following along with the debate. Hot topics of discussion included:

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The dark side of competition: credit risk and market penetration

by Xavier Reille: Thursday, February 25, 2010

At an investors’ conference two years’ ago, microfinance* was presented as a promising untapped market at the bottom of the pyramid with a market penetration of only 1% and a funding gap of USD 250 billion.

The recent delinquency crises affecting Bosnia and Herzegovina (BiH), Morocco, Pakistan and Nicaragua described in our new Focus Note “Growth and Vulnerabilities” paint a different picture. Too many–not too few–microcredits seem to be the problem in these markets.

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