Microfinance Commercialisation, Challenges and Issues in Developing Countries: A Critical Literature Review

Agus Eko Nugroho
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Agus Eko Nugroho: Indonesian Institute of Science (LIPI) and PhD candidate at the School of Economics and Finance, Curtin University of Technology, Australia

Economics and Finance in Indonesia, 2006, vol. 54, 173-195

Abstract: This paper aims at reviewing empirical literature on the performance and issues associated with commercialisation of microfinance institutions (MFIs). The popular approach believes that commercial-based operation can lead to financial self-sustainability without reducing the role to assist the poor. Although the growth in financial intermediation is evident, many commercialised MFIs remain dependence on subsidy and fail to achieve a greater outreach. Hence, this approach highly undermines the social mission of microfinance to reach the poorest of the poor

Keywords: Microfinance; Commercialisation; Developing Country (search for similar items in EconPapers)
JEL-codes: G00 L14 O50 (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:200607

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