Microfinance

Description

Microfinance is a collection of banking practices built around providing small loans, most of them without collaterals and leading to weekly repayments, accept tiny savings deposits, and offering slight insurance contracts. These activities are mostly dedicated to the poorest part of the population, helping women, and poor households in developing a business activity.
Microfinance is an appealing topic for several reasons. First, it focuses on non-traditional contract designs used to compensate for higher risks and to address information issues faced by micro-lenders. Second, microfinance can be viewed as a way of better understanding the nature of markets in low-income economies, with possible lessons for how to supply efficiently goods and services through markets, rather than state-owned companies (banks or insurers). Third, we focus on how microfinance can alleviate poverty, fight against gender inequalities, and strengthen communities.

Compétences visées

Préparer l’analyse stratégique et financières des organisations privées, Observer l’environnement juridique, économique et fiscal des entreprises, Analyser les politiques financières.

Discipline(s)

• Sciences économiques
• Sciences de gestion et du management

Syllabus

 Outline: 1. Introduction 2. The specificities of the credit markets (the various forms credit markets) 3. Microcredit and Group Lending (information, mechanism, new contracts, women targeting) 4. Micro-insurance & Savings 5. The impact on poverty and development (methodology issues, empirical findings) 6. Can microlending be sustainable? (the role of subsidies, two examples) 7. Incentives, management & organization (case study, multiple objectives, incentives) 8. Conclusion.