> Posted by Center Staff
In their inaugural newsletter for Winter 2012, About Microfinance features a compelling interview with Elisabeth Rhyne. The interview highlights several topics, including the resiliency of microfinance institutions and some outlooks for the microfinance industry and for the Center for Financial Inclusion.
The interview begins:
About Microfinance: In your 2009 book, “Microfinance for Bankers and Investors,” you discuss the recent financial crisis’ impact on microfinance institutions. The book states that historically, in countries such as Indonesia and Bolivia, microfinance institutions have proven to be more resilient than traditional banks. Two years later, I’m wondering how the microfinance institutions are doing. Has the industry been resilient, has there been a sharp increase in participants in the last 3 years due to the financial crisis?
Elisabeth Rhyne: I think the resilience has definitely been there. But, microfinance had some fallout from the crisis and it has had its own set of problems that were different from the crises. Before the 2008 crisis, microfinance institutions were not making the same kinds of mistakes that the other mainstream financial players were making. They were not overleveraged or misrepresenting risks. They were not selling clients products that they should not be buying (as were many subprime mortgage sellers). The fallout from the crisis was two-fold…
To read the entire interview in About Microfinance’s online edition of the newsletter, click here.
Image credit: aboutmicrofinance.com
Have you read?
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