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We are concerned about the way repayment rates are often reported. We’ve written about this issue before, arguing that different delinquency indicators can easily be misleading and pointing to one example we found where a microfinance institution’s reported repayment rate … [CLICK TO READ MORE]
We’ve thought and written a lot about microfinance lately. As of now, here’s where we stand. What microfinance is and isn’t First, it’s important to recognize that most of what you’ve heard about microfinance is false. It isn’t primarily about … [CLICK TO READ MORE]
I’m very concerned about the incentives for microfinance charities. As I see it, these are the things that they are “rewarded” for: Profitability, for obvious reasons. Any for-profit investors in microfinance institutions are presumably putting great pressure on them to … [CLICK TO READ MORE]
We’ve written before about problems with the way a microfinance institution’s “repayment rate” is commonly cited. We’ve been surprised to find that most institutions do not report what most of us would think of as a “repayment rate,” i.e., the … [CLICK TO READ MORE]
Just because someone is repaying their loans doesn’t mean they’re benefiting from the loans. We have given some conceptual/anecdotal support for this idea in the past, linking to David Roodman’s posts on possible “overlending” and comparing microloans to payday loans. … [CLICK TO READ MORE]
Note: I’ve responded to the most recent batch of comments. A lot of work has been put into estimating the “bang for your buck” in health initiatives. In the area of microfinance, though, things appear very murky. Microfinance advocates say … [CLICK TO READ MORE]
