Marie Michael Library
Microsavings compared to other sources of funds
This paper discusses various aspects of savings as a source of funds compared to other sources of funds as equity, commercial loans, grants and others. Starting with an examination of the liabilities structure of traditional banks and non-bank financial institutions, the specific risks involved in funds management are reviewed in a second step. Finally, the differences between the funding strategy of MFIs and traditional financial institutions are examined to provide insights into the existing obstacles for commercializing and "popularizing" the sources of funds in microfinance institutions.
Consultative Group to Assist the Poorest (CGAP)