Latin America and Caribbean 2009: Microfinance Analysis & Benchmarking Report

This report examines the state of the microfinance industry in the Latin America and Caribbean (LAC) region.

The report includes benchmarks based on data from 332 MFIs in over 18 countries in the region, as well as analysis of the financial performance and funding structure. The report states that:

• LAC’s microfinance industry continued to grow at a diminished rate in 2008;
• Credit portfolio expanded by about $13.9 billion, but growth slowed to an annual rate of 13.6%;
• Loans grew 14.1% in 2008, less than the 22% growth reported in 2007;
• Average outstanding balances remained static in 2008;
• Economic slowdown, over indebtedness and the financial crisis were the primary reasons for the diminished growth;
• In certain markets, state interventions into the financial sector are already creating negative blowback against the microfinance industry.

Findings indicate that institutions which showed some diversification in credit products achieved higher levels of profitability and larger portfolio at risk compared to MFIs that only focused on credit to microenterprises.