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Microfinance and rural development: a long-term perspective

Henk A. J. Moll · 2005 · Socio-Environmental Systems Modeling

Summary. Microfinance institutions can drive rural development by expanding savings and lending services to rural households, though this requires balancing two competing goals: reaching poor populations and maintaining financial sustainability. The paper examines how financial deepening affects rural economies at both household and national levels, finding positive effects overall. However, expanding financial services inevitably creates risks of bank failures, so microfinance sectors must prioritize stability alongside growth to serve more rural people effectively.

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Moll, H. A. J.. (2005). Microfinance and rural development: a long-term perspective. Socio-Environmental Systems Modeling. https://research.wur.nl/en/publications/microfinance-and-rural-development-a-long-term-perspective-2

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Categories
funding, regional-innovation-systems
Added
2026-04-28