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<p>This paper discusses the so-called commercial approach to microfinance under economic and ethical aspects. It first … shows how microfinance has developed from a purely welfare-oriented activity to a commercially relevant line of banking … business. The background of this stunning success is the almost universal adoption of the commercial approach to microfinance …
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Microcredit institutions typically apply rigid and fixed repayment schedules when disbursing loans in order to reduce transaction costs, simplify procedures, and inculcate fiscal discipline for better repayment behavior. Microcredit clients, however, often have neither smooth income nor singular...
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This paper presents a model of the complete microcredit financing chain investor - MIV - MFI - micro-borrower, in which social-minded MIVs provide funds only to those MFIs which do not exploit their bargaining power towards micro-borrowers. The MFIs with the highest bargaining power do not use...
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