Sustainability of Microfinance Institutions in Financial Crisis

Lenka DOKULILOVÁ, Karel Janda, Pavel ZETEK
2009 European Financial and Accounting Journal  
The aim of this paper is to clarify the problems of microfinance and thesustainability of microfinance institutions (MFI) in financial crisis. Wefind, that MFIs are often considered as one of the most effective andflexible strategies in the fight against global poverty. Due to several oftenunsolvable problems obstructing the easier and faster development ofthese institutions such as: ethnical problems, managerial resources, legalrecourses, unfortunate recourses and other, the operations of MFIs
more » ... areoften not sufficiently efficient. The microfinance sector is in generalknown for its adaptability and quite healthy survival of past financialcrises. However, current global financial crisis is testing the resilience ofMFIs hardly. The MFIs are much more connected to internationalfinancial markets now than it was the case during previous crises.Therefore we expect that they will not survive the crisis without bearingsome loses. But the expected losses are relatively smaller when comparedto other financial institutions.
doi:10.18267/j.efaj.65 fatcat:se77j6geprdd7d35vgk77nf7uy