Financing Microfinance: Exploring the Funding Side of Microfinance Institutions

Sep 2003
This paper aims to reveal some basic trends in the financing of microfinance institutions, such as where the financing comes from, and how the distribution changes over time. The paper does not claim to be a comprehensive review of this topic, but it offers some new information and points to some previously unexplored patterns. The paper also identifies and examines key emerging issues that face the increasing number of transformed microfinance institutions, including access to capital markets, greater reliance on foreign currency liabilities and the search for additional equity.