Microfinance credit boom driven by macroeconomic factors and commercialization risks financial stability.
The study looked at why microfinance lending grew rapidly before the financial crisis. They found that factors like overall economic conditions and traditional bank lending influenced this growth. Microfinance institutions getting money from sources other than deposits and investments also played a big role. The study showed that commercialized microfinance banks grew faster than non-governmental ones. However, they didn't find strong evidence that lending increased more in harder-to-reach markets.