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Does transformation enhance or hinder financial relationships in microfinance? The struggle between financial and social goals in Peru

Does transformation enhance or hinder financial relationships in microfinance? The struggle between financial and social goals in Peru

Marr, Ana (2012) Does transformation enhance or hinder financial relationships in microfinance? The struggle between financial and social goals in Peru. Enterprise Development and Microfinance, 23 (3). pp. 201-216. ISSN 1755-1978 (Print), 1755-1986 (Online) (doi:10.3362/1755-1986.2012.021)

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Abstract

Dynamic microfinance institutions are evolving from non-governmental organizations into regulated financial institutions at rapid speed. In Peru, recent economic growth and a facilitating regulatory environment have set the conditions for this kind of institutional transformation in an increasingly competitive microfinance market. Following a life-cycle approach, this paper scrutinizes key developmental stages with regard to the case-study microfinance institution’s financial relationships, and then situates it within the overall Peruvian microfinance wholesale lending market of nearly 200 organizations. A major finding is that, in the transformational process from NGO to regulated financial status, new and highly diverse lending relationships are forged while others peter out. While there is evidence to suggest that the Peruvian wholesale market creates opportunities for all to benefit from all types of lender, there exists a tendency for specialization whereby commercial lenders tend to partner with regulated microfinance institutions while NGOs struggle to find lenders even among the socially motivated type.

Item Type: Article
Additional Information: [1] Online Publication Date: February 26, 2013. [2] Published in print: September 2012. [3] Published as: Enterprise Development and Microfinance, (2012), Vol. 23, No. 3, pp. 201-216.
Uncontrolled Keywords: microfinance, wholesale lending, regulation, NGOs, Peru
Subjects: H Social Sciences > HB Economic Theory
Faculty / Department / Research Group: Faculty of Engineering & Science > Natural Resources Institute
Faculty of Engineering & Science > Natural Resources Institute > Development Studies Research Group
Faculty of Engineering & Science > Natural Resources Institute > Food & Markets Department
Faculty of Business > Department of International Business & Economics
Related URLs:
Last Modified: 14 Oct 2016 09:22
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/8819

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