Microenterprise Development Review: Volume 8 : No. 2 : December, 2005
Inter-American Development Bank (IDB)
The first article in this issue of Microenterprise Development Review discusses how banks can adapt scoring to microenterprise loans and how scoring can be adapted to microlenders. It also discusses the process of introducing scoring in a microlender, drawing on experience from an IDB-funded project with affiliates of Women's World Banking in Colombia and the Dominican Republic. The second article in this issue explores the best options for funding a microfinance institution and analyzes four main sources of MFI funding: mobilizing deposits, borrowing (from donors, governments, banks and other sources), issuing bonds and issuing stock. In addition, it examines recent trends in the use of these four instruments, the relative costs of each (including both financial and operating costs), other pros and cons of each funding source, and best practices in the use of the four instruments.