As we all know as human beings grow they are exposed to some risks. Financial institutions are also likely to suffer same. The global financial crises are indication of the vulnerabilities associated with expanded financial system. Does this apply to MFIs? What kind of risks are associated with MFIs as they grow? How do even conceptual growth of MFIs?
As MFIs grows they are exposed to high default rate due high customer base; Additionally most of them drift from their social mission towards commercialization.
Generally MFIs provide collateral free loan. With a small customer base it is easy for the organization to monitor. In fact the small MFI clients are generally known to the employees. As they grow, they venture into new areas, standardize operations, and increase customer base. Then it becomes difficult for them to maintain such information. This brings in difficulties - often leading to bad loans.
Have you tried this link? Up to a point it address some of your questions.
http://www.cgap.org/publications/growth-and-vulnerabilities-microfinance
Also, you can search for the following paper:
Wagner, Charlotte, Winkler, Adalbert
The Vulnerability of Microfinance to Financial Turmoil – Evidence from the Global Financial Crisis
in World Development, volume 51 (2013), pp.71-90
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