Paper

Microfinance Market Trends in Latin America and the Caribbean 2005-2010

Analyzing microfinance growth in Latin America and the Caribbean

This report presents an update on the performance of MFIs in Latin America and the Caribbean (LAC), in regional, sub-regional and certain national markets at the end of 2010. It analyzes the performance of MFIs in terms of coverage, credit types, finance structure, risk and profitability.

The report covers information from 47 MFIs during the period from 2005 – 2010. Findings include:

  • MFIs in LAC continued their growth in 2010 by adding 15.9 percent to loan portfolio and 23.3 percent to deposits;
  • Number of clients grew both in terms of borrowers and depositors;
  • Growth was different with respect to the types of credit and by sub-region;
  • Improvements in the level of loan recuperation and gradual recovery in economic activity after the international financial crisis caused the growth;
  • Loans to microenterprises had better growth and performance;
  • Level of risk fell in part due to an improvement in the levels of loan recovery and because of a series of write-offs.