The Need for Speed : Helping the Microfinance Industry Stay Afloat in Times of Crises
Microfinance has been a lifeline for many low-income people at the base of the pyramid, helping them break the cycle of poverty and improve their lives. Yet the rapid growth of the microfinance industry, combined with limited financial literacy amo...
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/08/24943139/need-speed-helping-microfinance-industry-stay-afloat-times-crises http://hdl.handle.net/10986/23487 |
| Summary: | Microfinance has been a lifeline for
many low-income people at the base of the pyramid, helping
them break the cycle of poverty and improve their lives. Yet
the rapid growth of the microfinance industry, combined with
limited financial literacy among its customers, made it
particularly vulnerable during the 2008-2009 global
financial crisis. To expand short-term financing solutions
to the microfinance industry following the crisis, to keep
credit flowing during a period of unprecedented financial
strife, International Finance Corporation (IFC) launched the
microfinance enhancement facility, one element of its
comprehensive counter-cyclical crisis response package. A
timely response was critical, and implementation risks were
high. This smart lesson shows how strong cooperation with
partners and the decision to develop an outsourced model
contributed to the success and reliability of this
crisis-response initiative. |
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