Track Record of Financial Institutions in Assisting the Poor in Asia

The impact of microfinance programs on the poor is difficult to assess, although a number of studies have tried.

This paper usefully summarizes the performance of the industry and identifies a number of empirical pitfalls and methodological problems. While outreach is surprisingly impressive, financial sustainability remains a major problem in many countries. Most importantly, positive benefits vary by gender, type of program and country, and some households may be so poor and lacking basic skills that it could even be a mistake to encourage them to borrow.

The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms..

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