CDSF is working to enhance global microlending activities. Microloans are commonly issued to people too poor to qualify for traditional bank loans. These loans, often as small as $100, enable recipients to start or expand small local businesses. Social leaders worldwide are recognizing the potential for microcredit to contribute to economic sustainability in developing regions.
For microlending to increase, lenders themselves will need to borrow larger pools of money to fund their microloans. CDSF is helping to ensure a steady source of that money through a study that will provide measureable indicators of microlending sustainability.
Collaboration with Omidyar Network
In September CDSF announced a collaboration with Omidyar Network and Taylor Jordan to undertake a default static pool analysis of a selected microlending partner. Static pool analysis is an analytical tool widely used by the mainstream capital markets to quantify risk. CDSF believes that the application of this effective risk-analysis tool will help microlending management and will result in greater microfinance investment.