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Profitable microfinance and its spillovers

What has very low default rates, relatively high administrative costs and high interest rates? The answer is: microfinance loans.

Despite the unfavorable expense ratios relative to commercial banks – the cost of lending one dollar is below four cents for a traditional bank compared with at least 10, and in some cases over 20 cents, for microlenders - microfinance institutions (MFIs) are beginning to attract serious money.

And the vote is in…

Alexis Sampson and Michael Jarvis sum up this year's International Business Forum:

The lights dimmed in the Preston Auditorium and the tension rose as the results were calculated. Having generated and then prioritized host of recommendations over the course of the IBF, delegates voted to rank their final top ten. Despite the risky reliance on electronic voting machines, the system worked and the results were reassuringly conclusive.