Research & Analysis

Developing Deposit Services for the Poor

These guidelines embody the working consensus of CGAP donor members on how donors can support deposit services in microfinance.

Supporting Microfinance in Conflict-Affected Areas

This Donor Brief addresses how supporting microfinance in devastated and fragile communities can be successful when donors work in concert, select qualified partners, are patient, are willing to take risks, and are prepared to pay higher costs.

Interest Rate Ceilings and Microfinance: The Story So Far

This Occasional Paper outlines the rationale for higher microcredit interest rates, the historical performance of subsidized lending, and the impact of interest rate ceilings on microfinance clients. It includes recommendations for fostering lower microcredit interest rates through competition and consumer protection without imposing interest rate ceilings.

Housing Microfinance

By applying good microfinance practice to housing finance, a range of financial institutions are beginning to offer much-needed housing finance services to low-income people. This Donor Brief outlines how donors can support these institutions and expand sustainable housing finance.

Financial Institutions with a Double Bottom Line

This Occasional Paper summarizes the results of CGAP's survey of the global outreach of a broad set of institutions that extend financial services downward -- institutions with a "double bottom line" of financial and social/development objectives. The survey found that over 750 million accounts exist below the traditional level of commercial banks and that a substantial fraction of these predominantly savings accounts probably belong to the poor or near poor -- and represent an important opportunity for outreach.

What Is a Network? The Diversity of Networks in Microfinance Today

Throughout the development of the microfinance industry, network support organizations (NSOs) have played a critical role in launching new institutions, developing standards, wholesaling funds, providing technical services, implementing knowledge management, and leading policy reform efforts.

Microfinance Product Costing Tool

CGAP developed and field tested an activity-based costing tool to help MFI managers understand and analyze individual product costs, especially administrative/organizational costs. Once a product's costs are determined, the tool suggests methods for understanding why and how the costs were incurred and how the product contributes (or not) to the overall financial viability of the MFI.

Breaking Down the Walls between Microfinance and the Formal Financial System

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.

The Role of Governments in Microfinance

Understanding the limited but constructive role governments can play in building financial systems is key to ensuring poor people's permanent access to quality financial services. This Donor Brief explains how experienced donors can support governments to develop sound policy frameworks and encourage vibrant and competitive microfinance, rather than directly providing financial services.

The Impact of Interest Rate Ceilings on Microfinance

Interest rate ceilings imposed by governments to protect poor people unfortunately often have the opposite effect. Customers do need protection from predatory lending practices, and this Donor Brief offers other options governments and donors can use.