Remove Debt to Equity Ratio Remove Development Remove Globalization Remove Operations
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The Microfinance Contagion Scenario

Harvard Business Review

But as information trickles out about how bad the repayment situation in AP is, a plausible global contagion scenario is emerging. Losses in AP will overwhelm many institutions' equity cushion. The average debt-to-equity ratio of the 10 largest MFIs in India is 7.06 , indicating an average 12% equity cushion.

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End the Religion of ROE

Harvard Business Review

Financial managers, supported by their bankers, increased their debt-to-equity ratios until capital requirements were imposed—oops, we mean until there was a catastrophic financial crash and a depression. Then banking regulations were imposed. More products at more pricepoints" is their name for this strategy.

ROE 13