Data Show MFIs Faced Rising Costs at Onset of Economic Slowdown
The Microfinance Information Exchange, Inc., a business information and data services provider for the global microfinance industry, announced the release of its latest data set, the 2008 MFI Benchmarks. The benchmarks cover financial and performance data from 1084 MFIs (microfinance institutions) throughout Asia, Africa, the Middle East, Eastern Europe and Latin America for calendar year 2008.
This data set is the first of its kind to reflect the impact of the financial crisis and the subsequent global economic slowdown on microfinance providers in the developing world.
“This data set documents the beginning of a challenging time for many microfinance providers. By the end of 2008, MFI growth rates had already begun to slow, leaving MFIs faced with higher operating costs,” stated Blaine Stephens, COO and director of analysis at the Microfinance Information Exchange, Inc. (MIX). “Rising costs likely reflect two factors. Increasing portfolio arrears in a number of markets shifts the focus of MFI staff from making productive new loans to instead following up with current clients to encourage payment. At the same time, slower growth leaves many MFIs with an excess in personnel, having staffed up for continued growth.”
The 2008 MFI Benchmarks, with complete analysis, will be featured in the next issue of the industry journal The MicroBanking Bulletin, No. 19, due out Dec. 30 from MIX.
The benchmarks file is available for download at: www.themix.org.
Source: PR Newswire (http://www.prnewswire.com/news-releases/data-show-microfinance-institutions-faced-rising-costs-at-onset-of-economic-slowdown-78439657.html)
Loading ...