Microfinance institutions, an empirical study from Moldova
|Author:||Mgr. Roman Gorgan|
|Year:||2012 - summer|
|Leaders:|| PhDr. Pavel Streblov M.Sc.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||The present master thesis deals with non-banking microfinance institutions and
examines its abilities and role in the poverty alleviation process.
It is more than necessary to pay attention to the rural sector and its development as any
successful transition of the economy requires transition of the rural sector as well. In
many transition economies people in the rural areas continue to live on the edge of
poverty, engaged in subsistence agriculture and remain susceptible to wide range of
shocks. In such countries rural population unlike urban one did not benefit to the same
extend from transition and need special attention and supporting policy measures.
Because of low penetration rate of microfinance institutions into rural areas, lacking or
insufficient size of collateral, financial illiteracy many poor but active man face
problems to obtaining finance for the development of new income opportunities.
In this context the master thesis emphasizes the role of savings and credit associations,
which unlike the commercial banks operate mainly in rural sector, have the most
significant effect on poverty alleviation.
Finally, the author analyses the activity of 3 non-banking microfinance institutions of
the Republic of Moldova and uses publicly available data to calculate the outreach,
efficiency and financial stability indicators.