Latin American countries have best environments for microfinance - study

Originally from Business News Americas on October 11, 2011 – how a study shows that two-thirds of the countries with the best business environments for microfinance are in Latin America.

Eight of the top 12 countries with the best business environment for microfinance are from Latin America, according to a study published by IDB and prepared by the Economist Intelligence Unit.

The annual study Global Microscope on the Microfinance Business Environment 2011 ranks the business environment for microfinance in 55 countries and provides an outlook on both country-specific and global trends. The top two countries are Peru and Bolivia, followed by Pakistan and Kenya.

The 2011 edition of the study compares the microfinance sector in countries and regions across two broad categories - regulatory framework and practices, and the supporting institutional framework. These are complemented by an adjustment factor for political shocks and stability.

This year's report shows that the global microfinance industry has begun to enter a more mature and sustainable growth phase, thanks to improvements in corporate governance, regulatory capacity and risk management.

The strong results for Latin America are driven by high scores on features that boost microfinance business, particularly the existence of credit bureau infrastructures, which are relatively well established in the region.

To read full report, go to this link.