2009 Mexico Microfinance Analysis & Benchmarking Report

Results obtained as of the closing of 2008 showed important changes in microfinance trends in Mexico over the last two years. High returns for microfinance institutions (MFIs) suffered a significant setback and even moved in a negative direction for most Mexican institutions as a result of higher expenses related to the increase of delinquent portfolios.

Prior to the beginning of the global financial crisis and the subsequent contraction of economic activities in Mexico, the portfolio at risk of the reporting MFIs was kept under control and with a coverage ratio close to 100 percent. Growth in volume of outstanding loans was high, allowing the indicators of overdue portfolios to be kept in levels quite low regarding the aggregate of the accumulated gross loan portfolio. On the other hand, profits allowed financing the expansion of financial services, thus reducing MFI dependence on external financing sources and strengthening the equity of MFIs. Finally, growing competition and entering of new institutions to the market helped achieve incipient reductions in the interest rates charged to clients.

In this publication:

Economic Activity and The Mexican Microfinance Sector

Consumer and Microenterprise: The Most Demanded Products

Outreach Growth with Lower Average Balances

Deep Decline in Returns

Features of Financing Structures of MFIs in Mexico

Insufficient Coverage of Portfolio at Risk

María Cecilia Rondón | MIX Latin America

To read the full publication, please click on the link to the right.

The 2009 Mexico Microfinance Analysis and Benchmarking Report was produced by MIX with the support of ProDesarrollo, and includes data based on the financial performance of 51 Mexican MFIs. This report is available in English and Spanish.