Financial Times FT.com

Calls for ratings framework amid surge in microfinance

By Joanna Chung in London

Published: June 27 2007 03:00 | Last updated: June 27 2007 03:00

Microfinance is quickly becoming a popular corner of the capital markets as more investment banks and investors see the business of providing small loans to low-income individuals in poor countries as potentially profitable as well as a powerful tool for development.

However, some experts say there are obstacles preventing the microfinance sector from reaching its full potential, including the absence of a global framework that mainstream investors can use to assess properly the risks associated with the sector.

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