Heads of microfinance institutions (MFIs) emphasize the difficulty in lowering interest rates without access to cheaper funds, suggesting a dedicated credit guarantee scheme or refinance facility. With current rates between 21% and 24%, there is regulatory pressure to reduce them. Alternatives include revamping existing credit guarantee schemes and introducing an interest subvention scheme.
Impossible trinity problem causes a cash crunch in Asia
China’s overnight and seven-day repo rates surged in February, while bond investors took losses from a sharp rise in yields. Banking liquidity in India suffered
March 10, 2025