The Asian Development Bank explains the “why” of high interest rates

Jul 2006
, July, 28 2006 - Nimal A. Fernando, of the ADB, wrote a paper describing the reasons of high interest rates.

… the paper concludes that the key to reducing interest rates is to reduce costs through improved market competition, innovation, and efficiency. Policymakers can play a role by improving financial infrastructure, promoting competition, and creating an enabling environment for MFIs.

Source : MicroCapital

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