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Provisioning for Loan Impairment in MFIs

Author: Anil Paul, Raj Kumar
Published: August 10, 2009

Abstract:

Maintaining adequate reserves to cushion against future loan losses has again been highlighted in the wake of recent financial crisis. This India Focus Note delves into the importance of this for the microfinance sector, highlights current challenges, and possible ways forward in provisioning for loan losses for Indian MFIs.

Tags: Microfinance , Retail banks , Risk management , Regulations , Credit risks , India , South Asia , Sa-Dhan , SEEP Network , IFN22 , IFN 22

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