New Findings Published in Global Microfinance Index
The Economist Intelligence Unit (EIU) of The Economist Group recently released a report analyzing the microfinance business environment in 55 countries around the globe. The study was based on evaluations of each nation’s regulatory, investment and institutional environment for microfinance. Among other things, factors taken into consideration are official legal recognition, interest rate restrictions, accounting standards, transparency, and the range of services provided beyond credit. Peru, followed by Bolivia and the Philippines, topped the Global Microfinance Index. All three countries have governments that refrain from implementing subsidy programs and instead focus on poverty reduction through microfinance development and expansion. Therefore, market competition and the range of products and services offered by MFIs in these countries is very robust. North America was not included in the study. Latin American countries in general performed very well in the index, with six countries occupying the top ten spots. Read more about the study here.