Publication: Micro-finance / Macro-challenges: Identifying and Responding to the Constraints faced by Myanmar Microfinance Institutions
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2024-06-07
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2024-06-07
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Microfinance institutions (MFIs) play a critical role in Myanmar, providing both rural and urban populations with the credit they need to finance purchases of working capital, agricultural inputs, and other goods and services. The sector experienced rapid growth between 2012 and 2020, with the number of MFI clients reportedly increasing from around 1 million to around 6 million over this period. Alongside fast growth in lending, Myanmar MFIs have contributed significantly to financial inclusion, particularly of women, who comprised 86 percent of MFI clients as of December 2023. This policy note provides a short overview of the recent history of the microfinance sector in Myanmar, tracing its rapid growth over the decade to 2020 and assessing its contribution to economic activity and the livelihoods of otherwise unserved populations. It analyzes the impact of the COVID-19 pandemic and the February 2021 military coup on MFI lending and operations, drawing on up-to-date data from the Financial Regulatory Department (FRD) and synthesizing the findings of recent studies and surveys.
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“World Bank. 2024. Micro-finance / Macro-challenges: Identifying and Responding to the Constraints faced by Myanmar Microfinance Institutions. © World Bank. http://hdl.handle.net/10986/41674 License: CC BY-NC 3.0 IGO.”
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