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DFIs impede the commercial competition
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Posted by CFO World
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jeudi, 23 février 2012 |
 A report called ‘Role Reversal revisited’ points out the role of DFIs (development finance institutions) and private lenders should have regarding funding microfinance institutions (MFIs). Indeed, it is explained that DFIs represent an obstacle for the industry growth because they impede the commercial competition. As microfinance industry matures, its growth can and should be financed by private resources and this role should be assumed by DFIs. They should go where private lenders don’t yet dare to tread and whereas they are aware of it, they don’t act as they supposed to because they invest in other sectors besides microfinance.
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