TRENDS
Regarding institutions
- Continued increase in regulated, supervised financial institutions in intermediation with this segment, through increases in both commercial banking activity and NBFIs.
- Organisations in this region must adapt to more competitive environments, brought about largely by high growth rates in the portfolios of commercial banks. The entry of banks into the sector, which can be expected to continue, should result in improvements in the quantity, quality and diversity of microfinance products supplied. The need for organisations to adapt to greater competition will result in larger geographical coverage and greater operational efficiency.
- Cooperative institutions will maintain their importance in those countries where they have a strong tradition.
- The presence of patronised or controlled organisations will continue to increase, so they are referred to in this document as vehicles for investment.
- The final outcome of the recession may be a reduction in the number of supplier organisations, and are therefore in the supply of financial services to microenterprises.
