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The rich get richer, the poor get richer, the New York Times gets outraged

A great article below in response to the NYT article from last week. One thing not mentioned is that not-for-profit MFIs charge similar, if not higher, rates of interest as do for-profits. Thus, the “complaints” lobbied against the for-profits should be brought against the not-for-profits, if not more so. However, all players are significantly better …
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Counting the world’s unbanked – McKinsey Quarterly

Counting the world’s unbanked . MARCH 2010: Alberto Chaia, Tony Goland, and Robert Schiff Source: Social Sector Practice . Fully 2.5 billion of the world’s adults don’t use banks or microfinance institutions to save or borrow money, but unserved doesn’t mean unservable. . Fully 2.5 billion of the world’s adults don’t use formal banks or …
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S&P upgrades ratings of Mexico’s Banco Compartamos

S&P upgrades ratings of Mexico’s Banco Compartamos . Microfinance Monitor, April 16, 2010: Ratings agency Standard and Poor’s has upgraded the Mexican microfinance bank Banco Compartamos’s long and short-term ratings to ‘mxAA‘ and ‘mxA-1+’, respectively. . The upgraded ratings reflect Compartamos’ capacity to maintain its financial profile, based on its asset quality and profitability, which …
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10 Determinants of Interest Rates in Microfinance

10 Determinants of Interest Rates in Microfinance . April 17, 2010 by Fehmeen Source: lormet.com . While the necessity of charging interest on microcredit has been widely accepted, there seems to be plenty of disagreement over the level of interest rate charged by microfinance providers because the factors that go into these calculations are not …
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What Makes The Microfinance Sector Attractive to PE Investors? – WSJ.com

What Makes The Microfinance Sector Attractive to PE Investors? – WSJ.com . April 5, 2010, 10:30 AM . By Durga Raghunath . Reader Discussion: Inspired by a report describing the attractiveness of the Banking and Financial Services Sector for the PE Investor, Mentors this week will discuss the universals that make a sector attractive. . …
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The outlook for microfinance investment 2010

The outlook for microfinance investment 2010 Thursday, April 1, 2010, 16:25 http://www.microfinancefocus.com/news/2010/04/01/special-report-is-the-crisis-over-the-outlook-for-microfinance-investment-2010/ By Matthew Fuchs Microfinance Focus , April 1, 2010 : After a challenging year, 2010 has begun on an optimistic note for microfinance investors. Some fund managers have declared that the recovery has begun, albeit a gradual one. Dr. Armand Vardanyan, Fund Manager, …
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How to Tell Good MFIs from Bad MFIs

An excellent article below which enumerates the difficulty of using an interest rate only to determine “good” vs “bad”. This article also illustrates well the value of the for-profit model, driving higher financial and social returns. This seems like a contradiction in terms, but the empirical evidence begs the question of superior social impact for …