However, rising interest rates and risks in the banking sector in the United States and Europe have increased uncertainties in South Asia’s outlook, given their significant impact on balance of payments, exchange rates, and financial markets.
Why would microfinance institutions agree to use flexible repayment strategies? Simply because delivering a new product opens a new market, allowing the institutions to reach people who have irregular income flows, while maintaining their profit share.
However, rising interest rates and risks in the banking sector in the United States and Europe have increased uncertainties in South Asia’s outlook, given their significant impact on balance of payments, exchange rates, and financial markets.
Why would microfinance institutions agree to use flexible repayment strategies? Simply because delivering a new product opens a new market, allowing the institutions to reach people who have irregular income flows, while maintaining their profit share.
