An Inside View of Latin American Microfinance
This book discusses experiences of Inter-American Development Bank (IDB) and Multilateral Investment Fund (MIF) in microfinance promotion in Latin America and the Caribbean (LAC). Microfinance has grown rapidly in LAC, and is one of the regions most profitable financial segments. IDB has directly supported microfinance for the past three decades through the Small Projects Program. IDBs MIF has provided innovation and capital to the microfinance sector in LAC for the past decade. The book:
- Presents case studies on upgrading;
- Discusses factors determining success of traditional commercial banks that downscale into microfinance;
- Examines importance of a sound regulatory and supervisory environment for microfinance;
- Discusses effects of 1990's financial crisis on MFIs;
- Emphasizes importance of technology to MFI outreach.
The book states that microfinance in LAC is at a crossroads. It needs to be brought to full scale, based on successful models from smaller countries. IDB will focus on developing new products, improving regulatory environments and promoting partner programs over the next five years. Its ultimate goal is to spur private markets to triple micro?nance in the region from its current portfolio level of $5 billion to $15 billion by 2011.
