With growth in some markets moving at a fast pace, the microfinance sector faces changing risks. The latest Microfinance Banana Skins 2011 report shows that microfinance institutions must confront new realities to sustain the good reputation the microfinance industry has enjoyed in recent years. The survey measured the risk perceptions of more than 500 practitioners, investors, and close observers of microfinance in 86 countries.
According to the survey, threats to the industry’s reputation are now seen as one of the fastest-rising risks facing micro-lenders. In the rankings, reputation risk has risen from 17th place in the last survey conducted in 2009 to second place in today’s survey. This is the largest leap recorded by a “Banana Skin” since the series was launched in 2008, and reflects recent controversies over microfinance lending practices in various markets, particularly India.
See full Description.
.
Posts
