Weathering the Storm: Hazards, Beacons, and Life Rafts
Lessons in Microfinance Crisis Survival from Those Who Have Been There
The years 2009-2010 were watersheds for the microfinance industry, with many microfinance institutions (MFIs) experiencing serious downturns for the first time. Dealing with this was challenging, and MFIs found themselves devising solutions on the fly, some successfully, others less so. Some were able to execute successful turnarounds, while others failed outright, but in the process they all left behind valuable lessons for the rest of the industry.
This white paper explores the crisis experiences of 10 MFIs in Asia, Africa, Europe, and the Americas. Based on those experiences, the paper offers a blueprint for sound crisis management and control. The report also presents 10 in-depth case studies which describe the different paths that can lead to crisis.
This white paper extends the work begun in a paper sponsored by Calmeadow and written by Beatriz Marulanda and others, “Taking the Good from the Bad in Microfinance: Lessons Learned from Failed Experiences in Latin America,” which reviewed 10 cases of Latin American MFIs in crisis.
Written by: Daniel Rozas. July 2011.