Sustainability of microfinance institutions in financial crisis

The aim of this paper is to clarify the problems of microfinance and the sustainability of microfinance institutions (MFI) in financial crisis. We find, that MFIs are often considered as one of the most effective and flexible strategies in the fight against global poverty. Due to several often unsolvable problems obstructing easier and faster development of these institutions such as: ethnical problems, managerial resources, legal recourses, unfortunate recourses and other, the operations of MFIs are often not sufficiently efficient. The microfinance sector is in general known for its adaptability and quite healthy survival of past financial crises. However, current global financial crisis is testing the resilience of MFIs hardly. The MFIs are much more connected to international financial markets now that it was the case during previous crises. Therefore we expect that they will not survive the crisis without bearing some loses. But the expected losses are relatively smaller when compared to other financial institutions.Financial crisis; Microfinance; Microcredit; MFIs

Interaction Of Porphyrins With A Dendrimer Template: Self-aggregation Controlled By Ph

The interaction between self-aggregated porphyrins such as 5,10,15,20-tetrakis(4-sulfonatophenyl)porphyrin (TPPS) and 5,10,15,20-tetrakis(4-phosphonatophenyl)porphyrin (TPPP), and a generation 5 (G5) PAMAM dendrimer template is governed by minute differences of porphyrin acido-basic properties. While at neutral pH both monomeric TPPS and TPPP form complexes with G5, decreasing pH did not lead to porphyrin ring protonation (pK(a) approximate to 5) but rather to the preferential formation of H-aggregates (probably H-dimers), most likely due to protonation of the G5. Upon further acidification of the solution, this face-to-face orientation of the porphyrin units is being converted to edge-to-edge aligned J-aggregates with a tightly defined structure. This process starts by protonation of the porphyrin ring at pH below 2.3 and 2.8 for TPPS and TPPP, respectively. The AFM imaging of porphyrin/G5 nanostructures obtained at pH 0.7 shows the formation of long nanorods of TPPS with partially aggregated G5 and small aggregates of TPPP connected to individual G5 molecules

Macroeconomic factors influencing interest rates of microfinance institutions in Latin America

Agricultural output in developing countries still represents a substantial part of GDP. This ratio has actually increased in some areas such as Latin America. As such, there is an increasing importance of microfinance institutions (MFIs) focusing on activities associated with agriculture and encouraging entrepreneurship in agriculture and in the rural communities in general. The contribution of microfinance institutions consists mainly in providing special-purpose loans, usually without collateral. However, questions exist as to the magnitude and adequate level of risk of providing micro-credit loans in relation to the interest rates being charged. We review two main approaches to setting interest rates in MFIs. One approach takes the view that interest rates should be set at a high level due to the excessive risk that these institutions undertake. The second approach is to convince the public of the possibility of reducing these rates through cost savings, increased efficiency, and sharing best practice, etc. Subsequently we econometrically analyse the impact of macroeconomic factors on microfinance interest rates in Latin America and the Caribbean. We show that these results depend on the chosen indicator of interest rate

MIKROFINANČNÍ REVOLUCE: AKTUÁLNÍ KONTROVERZE A VÝZVY

This paper provides a brief but comprehensive overview of microfinance academic literature with emphasis on recent innovations, trends and efficiency. In particular, we focus on controversial issues of microfinance, such as commercialization, regulation, interest rate policy and the balance between outreach and performance of MFIs. In summary, the findings of the reviewed literature underline the great improvement in the microfinance field that, however, has not reached its full potential yet. At the same time, we outline potential risks and drawbacks which are being discovered along the way of microfinance development and maturing, many of which still waiting for more rigorous scholarly examination

Comparison of behaviour of burnt beams models with effective and actual residual cross-sections in three point bending test

Glued laminated timber beams exposed to fire of a variable duration were tested in three point bending. Three types of model geometries taking into account the effect of burning were created. Each model was examined for five material data sets. The maximum deflection obtained from FEM simulations was compared with the corresponding deflection wel derived from a three point bending test of burnt beams. The analysis was performed with the help of Ansys® software limiting attention to a liner elasticity with the maximum applied force Fel selected at the proportionality limit observed experimentally. Majority of FEM models provided smaller deflections compared to measurements except for the material set adopting Young’s moduli from the compression test. The best fit was observed for the material data set obtained from homogenization. No predominant preference among individual geometries was found promoting the computational model based on reduced cross-section as sufficiently accurate

The Impact of Public Spending on the Performance of Microfinance Institutions

This paper investigates the role of public expenditures and general government debt in microfinance performance. Our panel regression applied to the data of microfinance institutions (MFIs) in Latin America and the Caribbean confirms the high significance of public finance for the growth of MFIs, especially for the size of their total assets and for their yield on gross loan portfolio. Moreover, the results indicate that MFIs, operating in the country with higher growth of GDP, are characterized by higher rate of social efficiency. The positive influence on microfinance is besides public finance also associated with a growth of rural population or an economy openness of the given country

The Impact of Public Spending on the Performance of Microfinance Institutions

This paper investigates the role of public expenditures and general government debt in microfinance performance. Our panel regression applied to the data of microfinance institutions (MFIs) in Latin America and the Caribbean confirms the high significance of public finance for the growth of MFIs, especially for the size of their total assets and for their yield on gross loan portfolio. Moreover, the results indicate that MFIs, operating in the country with higher growth of GDP, are characterized by higher rate of social efficiency. The positive influence on microfinance is besides public finance also associated with a growth of rural population or an economy openness of the given country

Survey of Microfinance Controversies and Challenges

This survey article provides a brief but comprehensive overview of microfinance academic literature with emphasis on recent innovations, trends and efficiency. In particular, we focus on controversial issues of microfinance, such as commercialization, regulation, interest rate policy and the balance between outreach and performance of MFIs. In summary, the findings of the reviewed literature underline the great improvement in the microfinance field that, however, has not reached its full potential yet. At the same time, we outline potential risks and drawbacks which are being discovered along the way of microfinance development and maturing, many of which still waiting for more rigorous scholarly examination. The paper also contains an illustrative econometric model of the relation between social and financial efficiency

Opportunities in microfinance risk management

This paper examines the main risk management opportunities and threats, which microfinance institutions (MFIs) are exposed to. Awareness and understanding of these indicators can make the evolution of microfinance more accurate and simultaneously can help to locate the microfinance market in the broader picture of economic development. Growing competition improves the current situation for borrowers, because it leads to acceptable interest rates policy and expansion of existing microfinance services. At the same time, intense competition may represent threats, if the rules of regulation and supervision are not properly set. In this regard, we believe that the future of microfinance will significantly depend on the linkage between MFIs and financial markets, especially in the light of access to an alternative source of funding, the possibility of securitization and other complementary services