RISKS IN LENDING OF THE FINANCIAL SOURCES
Commercial Bank versus Microfinancial Institution

SRNEC K., HAVRLAND B.

Abstract
The article deals with the issue of micro financing. The entry of MFIs on the market has shown to be more progressive than the commercial banks. Their market share is growing faster than that of the commercial bank. Their activities are less risky, cheaper and easily accessible than the products of the commercial banks.
The first part of the article outlines in general the current situation concerning the activities of micro finance. The second part is analytical. The conclusion presents the merits of MFIs for sustainable rural development. It also shows their reserve capacity. Currently there are some areas that have been sighted. These are zones, which needs utmost attention.

Key words:
Microfinancing; Small and Medium Enterprises; Sub-Saharan and West Africa; Financial Toolkits; Financial Market

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