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The U.S. Subprime Crisis: Five lessons for microfinance

Less than two years ago, nagging delinquency problems started to crop up in one tiny corner of the U.S. home finance market – so-called subprime mortgages.

They made the dream of first-time home ownership possible for many. Yet today, an estimated two million subprime loans appear likely to default. And the crisis has set off worldwide concerns about how the resulting credit crunch and looming U.S. recession will affect growth in countries rich and poor. What does this mean for microfinance?


Events rss

Banking Agents:  Building and maintaining bank branches can be very expensive. At this CGAP lunchtime event in Washington DC on 22 July, Ignacio Mas will talk about how networks of agents can be used to optimize access for poor clients.

Technology Forum 2008:  The third Technology Forum was held in Yaoundé, Cameroon July 1 and 2, 2008.

Gender Workshop:  CGAP co-hosted a workshop on Finance and Gender with Women's World Banking and the World Bank Group's Gender Action Plan.


Announcements rss

Microfinance Technology Survey Offers Chance to Win Free Consulting Services:  Whether you're a small MFI with just a few dozen clients, or a big organization, your responses will help build a picture and create greater awareness of what's going on around information technology for the microfinance industry. The survey is available in English, French, Spanish, and Arabic.

Funder Training Registration:  The next CGAP/MFMI training course for funders, "Building Inclusive Financial Systems: How Can Funders Make a Difference?", will be held in Croatia, September 8-12, 2008.

Over-indebtedness Workshop:  CGAP convened a group of industry experts to look at client over-indebtedness issues. What exactly do we mean by over-indebtedness? What does existing research tell us?


Latest Publications

Transforming NGO MFIs:  As sustainable microfinance business models mature, many nonprofit microfinance institutions (NGO MFIs) are considering transforming into for-profit institutions. This Occasional Paper provides insight and guidance on the various ownership-related issues that an NGO MFI may face when transforming into a for-profit institution.


National Microfinance Strategies:  An increasing number of countries are developing national microfinance strategies, bringing the topic to the forefront of national development priorities. After reviewing several national microfinance strategy/policy documents, CGAP identified common elements, early benefits, and challenges. There findings are summarized in this Brief.

 

Linking Financial Service Providers to Commercial Capital:  This Brief addresses guarantees used by microfinance institutions as funding instruments. It is based on a joint CGAP/USAID study of 96 transactions executed by eight guarantor agencies between 1988 and 2005, with most transactions made after 2000.


Banking on Mobiles:  This Focus Note examines how banks can translate the potential of mobile phones into greater financial access for poor people. Although mobile phone operators have been able to use the mobile phone for mobile remittance and bill payment services in several countries, banks have had little success in using mobile phones as part of a growth or outreach strategy.




CGAP Microfinance Blog

CGAP Microfinance Blog:  Welcome to the CGAP Microfinance Blog where we want to hear your comments on the latest trends and issues in access to finance.

The Microfinance Gateway

http://www.microfinancegateway.org

The Microfinance Gateway is the most comprehensive online resource for the global microfinance community.
http://www.microfinancegateway.org

Headlines rss

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Microfinance raises fresh sub-prime fears
July 15, 2008 The Times
Microfinance firms seen heading into a phase of consolidation
July 14, 2008 Mint
New Law to Check Fraud in Saccos
July 2, 2008 All Africa
Banco Azteca Exports Winning Formula to Brazil
July 1, 2008 The Banker
SACCOS Want to Stay With Trade Ministry
July 1, 2008 All Africa
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