Debt to Equity Ratio, Globalization and Operations

The Microfinance Contagion Scenario

Harvard Business Review

JUNE 10, 2011

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.

Microfinance

Microfinance Debt to Equity Ratio MFI Crisis

End the Religion of ROE

Harvard Business Review

OCTOBER 20, 2011

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.

ROE

ROE Debt to Equity Ratio Innovation Incentives

Leadership Digital

The Microfinance Contagion Scenario

End the Religion of ROE

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