In response to the New York Times article "Banks Making Big Profits From Tiny Loans", President and CEO of Women's World Banking, Mary Ellen Iskenderian responds:

To the Editor:

Re: "Big Banks Draw Big Profits From Microloans to Poor" by Neil MacFarquhar (April 13)

Ensuring that interest rates are high enough to recoup the costs of lending without gouging the poor is a critical issue for the entire microfinance industry. While pointing out that many MFIs charge disturbingly high interest rates, the article discusses little of what is being done to reduce them.

There are many ways to bring microfinance interest rates down including reducing operating costs through the use of technology and increasing competition and transparency. In mature microfinance markets like Bolivia, for example, where clients are offered a wide selection of products and providers, interest rates have steadily declined.

Mary Ellen Iskenderian
President and CEO

NY Times Published Letter