Microfinance typically refers to various kind of small loans, savings, money transfers and other kind of financial services targeted to low-income clients. Now, as the market for microfinancing mature, there are new options also for foreign currency exchange which often been pointed out as a big risk factor. Mini Foreign currency exchange Recent studies show that currency risk is one of the biggest challenges for microfinancing. If the loans are taken in USD, which is [...]
Capital Markets
Almost everywhere around the world the stockmarkets have been falling in the last time, due to things like banks loosing money in subprime loans. But not everything are loosing value nowadays. The microfinance industry is developing and more traditional financial institutions are opening their eyes for microfinance because they starts to see the huge opportunities. Investing in microfinance and helping people start busiensses means profits for both the lender and borrower. It´s a stable and [...]
The Inter-American Development Bank(IDB) sponsors a new pilot rating program in Latin America set up by S&P to improve the infrastructure of microfinance institutions for national capital markets. S&P and IDB are cooperating in this project with the aim to gain acccess to the capital markets for the MFIs. Standard&Poors involvement is a breakthrough in the microfinance industry, S&P talks the same “language” as investor and their benchmarking tools really opens up the capital markets [...]
