Improving Financial Sustainability Through Effective Credit Risk Management and Human Talent Development in Microfinance Institutions

Fabricio Miguel Moreno-Menéndez, Vicente González-Prida (), Diana Pariona-Amaya, Victoriano Eusebio Zacarías-Rodríguez, Víctor Zacarías-Vallejos, Sara Ricardina Zacarías-Vallejos, Luis Alberto Aguilar-Cuevas and Lisette Paola Campos-Carpena
Additional contact information
Fabricio Miguel Moreno-Menéndez: Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru
Vicente González-Prida: Department of Industrial Management I, University of Seville, 41092 Seville, Spain
Diana Pariona-Amaya: Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru
Victoriano Eusebio Zacarías-Rodríguez: Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru
Víctor Zacarías-Vallejos: Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru
Sara Ricardina Zacarías-Vallejos: Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru
Luis Alberto Aguilar-Cuevas: Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru
Lisette Paola Campos-Carpena: Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru

IJFS, 2025, vol. 13, issue 2, 1-31

Abstract: This paper explores how credit risk management and human capital development sustain financial stability in microfinance institutions. Both qualitative and quantitative research methods allow this study to investigate credit risk management strategies while examining policies for inclusivity plus incentive plans along with debt portfolio selection efficiency. This research emphasizes that financial operations depend on skilled employees who require motivating interventions alongside training programs while developing ethical practices. The research discovers that organizations with strong credit risk management frameworks along with dedicated personnel achieve enhanced financial performances and reduced default incidents. This study confirms that microfinance institutions need both superior risk management along with human resource development systems to achieve sustainable development. This study enriches economic development research by demonstrating that implementing an equal mixture of financial and human resources produces successful economic results.

Keywords: credit risk management; financial sustainability; human talent development; microfinance institutions; risk management strategies; sustainability (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7072/13/2/60/pdf (application/pdf)
https://www.mdpi.com/2227-7072/13/2/60/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:13:y:2025:i:2:p:60-:d:1630164

Access Statistics for this article

IJFS is currently edited by Ms. Hannah Lu

More articles in IJFS from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().