Microfinance and the Global Financial Crisis : A Call for BASEL

Kruiff, David ; Hartenstein, Stephan

International Finance Corporation, Washington, DC

关键词: ACCESS TO FINANCE;    ACCOUNTING;    ACCOUNTING STANDARDS;    ADVISORY SERVICES;    AFFILIATES;   

RP-ID  :  94906

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

For many years, microfinance has beenthe poster child of governments, policymakers, andinternational organizations with the goal of liftingmillions of people out of poverty. The notion thatmicrofinance can pursue and achieve the intertwined goals ofdevelopment and financial profitability without frictionpredominated. This dual opportunity, combined with a hugeuntapped market for financial services at the bottom of thepyramid attracted large amounts of funding frominternational capital markets, triggering unprecedentedlevels of growth. Until the global financial crisis, thesustainability of the resulting market growth had not beensignificantly questioned. As the crisis unfolded during theend of 2007, there seemed to be consensus among microfinancepractitioners, analysts, and other industry experts thatthis crisis will be different. The microfinance industrybraced itself for anticipated liquidity crunches, increasein costs of funds, and foreign exchange, as well as a sharprise in portfolio arrears. This paper will: review recentpublications that have drawn conclusions on the effects ofthe global financial crisis based on empirical dataresearch; draw the conclusion that proper governance andrisk management systems are essential and can have avoidedmany of the problems specific microfinance institutions(MFIs) faced during the financial crisis; and highlightBasel framework sections relevant to MFIs and demonstratehow these can be applied to strengthen MFIs.