GLOBAL RECESSION AND MICROFINANCE RISK GOVERNANCE IN DEVELOPING COUNTRIES

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Abstract

Global recession, started in 2008, is still proving an unresolved perfect storm and the financial crisis has affected also the real economy, creating widespread social unrest. Microfinance institutions (MFIs) in developing countries seem however less affected by the worldwide turmoil, due to their
segmentation and resilience to external shocks. Recession has a big impact on governance mechanisms, altering the equilibriums among different stakeholders and increasing the risk of investment returns; any governance improvement is highly welcome and recommended. No governance, no money for growth or bare survival. In the confused phase we are living in, at the moment there are not evident winners, but the underbanked poorest, unless properly supported, once
again risk being the ultimate losers.

Keywords: Microfinance, Governance Risk, Recession, Developing Countries

How to cite this paper: Moro Visconti, R. (2011). Global recession and microfinance risk governance in developing countries. Risk Governance and Control: Financial Markets & Institutions, 1(3), 17-30. https://doi.org/10.22495/rgcv1i3art2