Paper

2012 Latin America & the Caribbean Regional Snapshot

Analyzing the performance of microfinance in Latin America and the Caribbean
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This presentation provides information on the performance of microfinance in Latin America and the Caribbean (LAC) in 2012. Topics discussed include credit and savings products, financial performance and portfolio risk, quarterly performance, and funding structures.The data reveals that South America (SA) led the region in growth of borrowers and portfolio, while Central America and the Caribbean (CC) continued their recovery in credit activity. Findings include:

  • Microenterprise was the most prevalent product;
  • Microenterprise doubled its portfolio during 2008-2011;
  • Housing loans increased at the regional level, while consumer credit decreased in CC and Mexico;
  • Growth in depositors and deposits was less in 2011 than it was in 2010;
  • Voluntary deposits grew faster than obligatory deposits during 2009-2011 in Mexico;
  • CC and Mexico witnessed reduced returns-on-assets, and lower returns-on-equity;
  • Write offs decreased in SA, but portfolio-at-risk levels (PAR) saw a slight increase over 2010 levels;
  • CC continued to have the highest proportion of PAR in the region, although there was a decrease in its portfolio risk indicators;
  • Recapitalization of profits intensified, particularly in SA;
  • MFI funding sources were mostly local.