Latin America and the Caribbean Microfinance Market Trends 2007-2012

This report presents the market trends in Latin America and the Caribbean. It provides a comprehensive view of the evolution of microfinance in the region through information on the regional loan portfolio, geographic location, and gender of borrowers as well as the structure of deposits.The sample contains 58 MFIs that operated throughout the 2007-2012 period, accounting for 59% of total borrowers and for 62% of the region's gross loan portfolio reported to MIX. Major findings include:

• Regional portfolio showed continuous growth of 21% for the 2007-2012 period. While Mexico showed strong growth (over 30% annual) and South America grew 20%, Central America and the Caribbean grew only 5% in the same period;
• Central America experienced a decline in portfolio at risk levels (3.4% in 2012 from 10% in 2010) due to portfolio restructuring and prudent loan policies;
• Rural credit accounted for about 20% at the regional level, although in Mexico, South America, and Central America it was nearly 40%, 22%, and 30% respectively;
• Deposits represented the main source for South America (68%) and Central America and the Caribbean (53%). In Mexico, borrowings were the main funding source for microfinance (58%).