Lending to rural borrowers is a key element of pursuing the poverty alleviation mission of microfinance. However, a strong focus on rural areas is said to hamper the sustainability of microfinance institutions (MFIs). We analyze this potential trade-off based on data covering 802 microfinance...

This paper contributes to the literature on liquidity crises and central banks acting as lenders of last resort by capturing the mechanics of dual liquidity crises, i.e. funding crises which encompass both the private and the public sector, within a closed system of financial accounts. We...

Euroisation/dollarisation - the replacement of the domestic currency by a foreign currency, mostly the US dollar or the euro - has regained significant popularity in recent years, as it is generally regarded as a viable "corner solution" for exchange rate regimes. Part of its attractiveness is...