Research & Analysis
Publication

Breaking Down the Walls between Microfinance and the Formal Financial System

Read Time:

1 minute

Microfinance works. It enables the poor to build assets, diversify and increase incomes, and reduce their vulnerability to economic stress. Microfinance is sustainable: Dozens of institutions have proved that financial services for poor people can cover their full costs, through adequate interest spreads, relentless focus on efficiency, and aggressive enforcement of repayment.