Deshpande, RaniNestor, CamillaAbrams, Julie2012-08-132012-08-132007-08https://hdl.handle.net/10986/9562Microfinance institutions (MFIs) today have an increasingly broad range of financing sources at their disposal. This allows for greater funding diversification, but it also makes decisions about capital structure more complex. Several high-profile financing transactions for MFIs have taken place recently, including securitizations, local bond issues, the first large-scale venture capital investment in an MFI, and the first Initial Public Offering of shares. In addition, where their legal structure permits, many MFIs are launching large-scale deposit mobilization campaigns as a core funding strategy. Consultative Group to Assist the Poor (CGAP) and Grameen Foundation recently conducted a survey of MFI managers to better understand MFI capital structure decision-making processes in the face of these expanding financing options.CC BY 3.0 IGOALTERNATIVE FUNDINGBALANCE SHEETSBANKSBONDBOND ISSUESBONDSBORROWINGCAPITAL BASECAPITAL MARKETSCAPITAL STRUCTURECHEAP LOANSCOLLATERALCOLLATERAL REQUIREMENTSCOMMERCIAL BANKSCOMMON SHARESCOST OF DEBTCOST OF EQUITYCROSS-BORDER PAYMENTSCURRENCYCURRENCY DEPRECIATIONCURRENCY RISKDEBTDEBT FINANCINGDEBT INSTRUMENTSDEPOSITDEPOSIT MOBILIZATIONDEPOSIT SERVICESDEPOSITSDIFFERENT CURRENCIESDIVERSIFICATIONDIVIDENDSDOMESTIC BANKSDOMESTIC DEBTDOMESTIC EQUITYDOMESTIC MARKETSEQUITY INVESTORSEQUITY PRODUCTSEQUITY RATIOSEXPOSUREEXTERNAL BORROWINGFINANCIAL ANALYSISFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL MARKET DEVELOPMENTFINANCIAL SERVICEFINANCIAL SERVICESFINANCIAL SYSTEMSFIXED ASSETSFOREIGN DEBTFOREIGN EQUITYFOREIGN EXCHANGEFOREIGN EXCHANGE RISKFOREIGN LENDERSFORMS OF DEBTFUNDING SOURCEFUNDING SOURCESGUARANTEE FEESHARD CURRENCYINFLATIONINITIAL PUBLIC OFFERINGINTEREST RATEINTEREST RATESINVESTINGINVESTMENT DECISIONSINVESTMENT FUNDSLENDERSLEVERAGELOCAL BANKLOCAL BANKSLOCAL CAPITAL MARKETSLOCAL CURRENCYLOCAL DEBTLOCAL FINANCIAL INSTITUTIONSLOCAL FINANCIAL MARKETLOCAL INVESTORSMARKET DEVELOPMENTMARKETINGMARKETING STRATEGYMATURITIESMFIMFISMICROFINANCEMICROFINANCE INSTITUTIONSNOMINAL INTEREST RATESPLEDGESPOOR CLIENTSPORTFOLIOPORTFOLIO GROWTHPREPAYMENTPREPAYMENT PENALTIESREGISTRATION FEESREGULATORY FRAMEWORKRESERVESRETURNRISK MANAGEMENTRURAL BANKSSAVERSSAVINGSSOCIAL CRITERIASOCIAL MISSIONSOLVENCYSOURCE OF FUNDSSTRATEGIC INVESTORSSUB-SAHARAN AFRICASUBORDINATED DEBTSUPERVISORY AUTHORITIESTREASURYTRUE COSTUNSECURED DEBTVALUABLEVALUATIONVENTURE CAPITALVENTURE CAPITAL INVESTMENTWITHHOLDING TAXESWorld Bank10.1596/9562