Countries & Regions

Bolivia has a strong microfinance sector that serves as a leader for the entire Latin American region. MFIs across the country have experienced steady growth in their outreach of both credit and savings services, fueled largely by a recent emphasis on expansion of service markets into previously unbanked rural areas. The newly created Financial System Supervisory Authority (ASFI) has also taken great initiative to develop a microfinance regulatory scheme that is appropriate to the current specifications of the Bolivian market. An analysis of what new regulatory laws are likely to mean for MFIs in Bolivia can be found throughout the Bolivia Country Briefing:

• Overview: Recent years have seen a consolidation and strengthening of regulation schemes pertaining to the Bolivian microfinance sector. The Financial System Supervisory Authority has defined new standards for the sector that reflect current changes in market conditions.
• Supply & Demand: Strong and continued growth throughout the sector in terms of both loans and deposits has been driven by improvements in macroeconomic conditions, excess liquidity in the financial system and increased outreach of services into rural areas.
•  Funding: Client deposits serve as the principle source of funding for Bolivian MFIs, accounting for more than 65% of total liabilities in 2010. A growing number of MFIs are however turning to local debt markets as an alternative source of low-cost financing.
•  Performance: Decreases in profitability indicators recorded by MFIs in 2010 were largely due to increased operational expenses as many microfinance actors looked to expand outreach into new locations and markets.  
• Quarterly Update: New regulations issued by ASFI in December 2010 aim to moderate the hyper-growth of consumption loans throughout the country, and in so doing head-off potential problems of over-indebtedness seen in other countries in the region. In light of these regulatory changes the MIX Barometer shows that expectations are that risk levels will remain in check moving forward.

To stay current on Bolivia market level developments and gain deeper market intelligence, learn more about MIX Premium Solutions to see if our premium services are right for you.