Microfinance in Peru as Part of the Strategy of an International Investment Fund

Abstract

This paper arises from the idea that in the current conditions of the credit crunch, the Microcredit can be a solution for small businesses that find it increasingly difficult to obtain credit from the banking system and also an opportunity of investment for international investors which want invest in this sector. However, for realize it there must be a system of specialized microcredit institutions and a critical mass of financial need that justifies the action also of investors, including international. Hence the idea of this survey on microfinance in Peru where we analyze the system of Microcredit and estimate, among other things, the financial needs of the institutions of Microcredit.

Credit risk and profitability of short-term deposit at Savings and Credit Cooperatives. The case of Peru

“…High level of poverty and widespread micro entrepreneurial activity make a perfect mix for a flourishing microcredit industry (Pait, 2009). In a period of record-low interest rates, international investors have been attracted by microfinance because of its high interest rates and reasonably safe returns: they have significantly increased investment in MFIs, especially on large ones (Intrisano and Micheli, 2015).…”

“…At the same time, efforts have been made to ensure stricter control over the financial sector as a whole, and the microcredit in particular. SBS, a constitutionally autonomous entity, accomplishes the main task of supervising the entire Peruvian financial system and it can authorize institutions to collect money from the general public (Intrisano and Micheli, 2015). The cooperative sector had not been immune from suspects of money laundering (Gómez Méndez and Janampa Acuña, 2019) yet, since SBS started supervising the microfinance sector, the image and reliability of microcredits has dramatically improved.…”