European Microfinance Credit Risk Management and Credit Scoring
نویسنده
چکیده
In this paper we provide an analysis of credit risk management and the use of credit scoring among European MFIs. With this aim, we designed and sent a survey to the full set of known MFIs operating in Eastern and Western Europe. 58 MFIs completed the survey. We observe that the European microfinance industry has already dedicated substantial effort to risk management, noting that more than half of the respondents to the survey that have a specialised risk management unit and almost half of the sample already use credit scoring to support the operations of its loan officers. However, efficiency and outreach remain low while credit risk is still quite high. Our results underline the potential of credit scoring to support a more resilient microfinance sector in terms of risk, efficiency and outreach. We hope that information contained in this report will be useful to build a sound, efficient and sustainable microfinance industry in Europe.
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