Library Videos Financial Crisis Impact on MFIs and their Clients Part 1

Financial Crisis Impact on MFIs and their Clients Part 1

13 Oct 2009 17047

In this video series-1, Elisabeth Littlefield, CEO, CGAP, talks about financial crisis within microfinance industry and its impact on MFIs and their clients. Elisabeth highlights that the food crisis coupled with oil crisis has resulted in the fall in financial condition of microfinance borrowers. She notes that due to the crisis remittances were going down in most countries and in some cases they were going up because of a variety of reasons. Overall the  purchasing power of MFI clients was getting affected. MFIs on the other hand faced increased credit risk and as a result there was a shrinking of loan size and portfolio of MFIs. Besides liquidity risk was also challenging the MFIs.

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