The paper studies the ‘wholesale’ market through which microfinance institutions (MFIs) operating in Peru, Tanzania, and the state of Tamil Nadu in India obtain credit. The focus is on the network of relationships between MFIs and their lenders in each setting in order to explore the extent to which they mirror country-specific regulatory, economic, and social factors; to identify the regulatory frameworks that are most conducive to channelling sufficient funding to microfinance; and elucidate the conditions under which MFIs’ ties with wholesale lenders enhance their ability to achieve their dual goals of poverty reduction and financial sustainability. The study brings to light considerable cross-country variation in the structure and features of wholesale lending relationships, and relates it primarily to differences in regulation. On this basis, this paper makes the case that building a more enabling regulatory environment for lending partnerships may improve the capacity of microfinance to pursue its mission.

Balkenhol, B. (ed.) (2007) Microfinance and Public Policy: Outreach, Performance and Efficiency, Palgrave Macmillan, Basingstoke, UK.

Boúúaert, M. (2008) A Billion to Gain? A Study on Global Financial Institutions and Microfinance, report commissioned by ING Microfinance Support, Netherlands.

CFI (2010) ‘Client Protection in Peru’ [website], Center for Financial Inclusion at ACCION International <http://www.centerforfinancialinclusion.org/Page.aspx?pid=1641≯ [accessed 25 July 2010]. http://www.centerforfinancialinclusion.org/Page.aspx?pid=1641

CRISIL Ratings (2009) India Top 50 Microfinance Institutions, CRISIL, Mumbai.

Cull, R., Demirgüç-Kunt, A. and Morduch, J. (2009) ‘Microfinance meets the market’, Journal of Economic Perspectives 23(1): 167-92.

EIU (Economist Intelligence Unit) (2010) Global Microscope on the Microfinance Business Environment, EIU, The Economist Group, London.

Gonzalez, A. (2010) ‘Microfinance funders profiles: A short guide for young and small institutions still looking for a match’, MIX Data Brief 6.

Intellecap (2010) Indian Microfinance Crisis of 2010: Turf War or a Battle of Intentions? white paper, Intellecap, Mumbai.

Kenis, P. and Oerlemans, L. (2008) ‘The social networks perspective’, in S. Cropper, M. Ebers, C. Huxham and P.S. Ring (eds), The Oxford Handbook of Inter-Organisational Relationships, Oxford University Press, Oxford.

Ledgerwood, J. and White, V. (2006) Transforming Microfinance Institutions: Providing Full Financial Services to the Poor, World Bank, Washington, DC.

Levy, F. (2002) ‘Apex institutions in microfinance’, CGAP Occasional Paper 6.

Lok Capital (2010) Microfinance Industry in India, Lok Capital, Gurgaon, India.

MixMarket (2010) ‘Microfinance institutions data: Indicators and funding structure databases’ [website], <http://www.mixmarket.org/mfi≯ [last accessed 24 August 2010]. http://www.mixmarket.org/mfi

Srinivasan N. (2009) Microfinance India: State of the sector report, Sage, New Delhi.

Triodos (2007) Tanzania: Country Scan Microfinance, Triodos Facet, Netherlands.

Balkenhol, B. (ed.) (2007) Microfinance and Public Policy: Outreach, Performance and Efficiency, Palgrave Macmillan, Basingstoke, UK.

Boúúaert, M. (2008) A Billion to Gain? A Study on Global Financial Institutions and Microfinance, report commissioned by ING Microfinance Support, Netherlands.

CFI (2010) ‘Client Protection in Peru’ [website], Center for Financial Inclusion at ACCION International <http://www.centerforfinancialinclusion.org/Page.aspx?pid=1641≯ [accessed 25 July 2010]. http://www.centerforfinancialinclusion.org/Page.aspx?pid=1641

CRISIL Ratings (2009) India Top 50 Microfinance Institutions, CRISIL, Mumbai.

Cull, R., Demirgüç-Kunt, A. and Morduch, J. (2009) ‘Microfinance meets the market’, Journal of Economic Perspectives 23(1): 167-92.

EIU (Economist Intelligence Unit) (2010) Global Microscope on the Microfinance Business Environment, EIU, The Economist Group, London.

Gonzalez, A. (2010) ‘Microfinance funders profiles: A short guide for young and small institutions still looking for a match’, MIX Data Brief 6.

Intellecap (2010) Indian Microfinance Crisis of 2010: Turf War or a Battle of Intentions? white paper, Intellecap, Mumbai.

Kenis, P. and Oerlemans, L. (2008) ‘The social networks perspective’, in S. Cropper, M. Ebers, C. Huxham and P.S. Ring (eds), The Oxford Handbook of Inter-Organisational Relationships, Oxford University Press, Oxford.

Ledgerwood, J. and White, V. (2006) Transforming Microfinance Institutions: Providing Full Financial Services to the Poor, World Bank, Washington, DC.

Levy, F. (2002) ‘Apex institutions in microfinance’, CGAP Occasional Paper 6.

Lok Capital (2010) Microfinance Industry in India, Lok Capital, Gurgaon, India.

MixMarket (2010) ‘Microfinance institutions data: Indicators and funding structure databases’ [website], <http://www.mixmarket.org/mfi≯ [last accessed 24 August 2010]. http://www.mixmarket.org/mfi

Srinivasan N. (2009) Microfinance India: State of the sector report, Sage, New Delhi.

Triodos (2007) Tanzania: Country Scan Microfinance, Triodos Facet, Netherlands.

Balkenhol, B. (ed.) (2007) Microfinance and Public Policy: Outreach, Performance and Efficiency, Palgrave Macmillan, Basingstoke, UK.

Boúúaert, M. (2008) A Billion to Gain? A Study on Global Financial Institutions and Microfinance, report commissioned by ING Microfinance Support, Netherlands.

CFI (2010) ‘Client Protection in Peru’ [website], Center for Financial Inclusion at ACCION International <http://www.centerforfinancialinclusion.org/Page.aspx?pid=1641≯ [accessed 25 July 2010]. http://www.centerforfinancialinclusion.org/Page.aspx?pid=1641

CRISIL Ratings (2009) India Top 50 Microfinance Institutions, CRISIL, Mumbai.

Cull, R., Demirgüç-Kunt, A. and Morduch, J. (2009) ‘Microfinance meets the market’, Journal of Economic Perspectives 23(1): 167-92.

EIU (Economist Intelligence Unit) (2010) Global Microscope on the Microfinance Business Environment, EIU, The Economist Group, London.

Gonzalez, A. (2010) ‘Microfinance funders profiles: A short guide for young and small institutions still looking for a match’, MIX Data Brief 6.

Intellecap (2010) Indian Microfinance Crisis of 2010: Turf War or a Battle of Intentions? white paper, Intellecap, Mumbai.

Kenis, P. and Oerlemans, L. (2008) ‘The social networks perspective’, in S. Cropper, M. Ebers, C. Huxham and P.S. Ring (eds), The Oxford Handbook of Inter-Organisational Relationships, Oxford University Press, Oxford.

Ledgerwood, J. and White, V. (2006) Transforming Microfinance Institutions: Providing Full Financial Services to the Poor, World Bank, Washington, DC.

Levy, F. (2002) ‘Apex institutions in microfinance’, CGAP Occasional Paper 6.

Lok Capital (2010) Microfinance Industry in India, Lok Capital, Gurgaon, India.

MixMarket (2010) ‘Microfinance institutions data: Indicators and funding structure databases’ [website], <http://www.mixmarket.org/mfi≯ [last accessed 24 August 2010]. http://www.mixmarket.org/mfi

Srinivasan N. (2009) Microfinance India: State of the sector report, Sage, New Delhi.

Triodos (2007) Tanzania: Country Scan Microfinance, Triodos Facet, Netherlands.

Balkenhol, B. (ed.) (2007) Microfinance and Public Policy: Outreach, Performance and Efficiency, Palgrave Macmillan, Basingstoke, UK.

Boúúaert, M. (2008) A Billion to Gain? A Study on Global Financial Institutions and Microfinance, report commissioned by ING Microfinance Support, Netherlands.

CFI (2010) ‘Client Protection in Peru’ [website], Center for Financial Inclusion at ACCION International <http://www.centerforfinancialinclusion.org/Page.aspx?pid=1641≯ [accessed 25 July 2010]. http://www.centerforfinancialinclusion.org/Page.aspx?pid=1641

CRISIL Ratings (2009) India Top 50 Microfinance Institutions, CRISIL, Mumbai.

Cull, R., Demirgüç-Kunt, A. and Morduch, J. (2009) ‘Microfinance meets the market’, Journal of Economic Perspectives 23(1): 167-92.

EIU (Economist Intelligence Unit) (2010) Global Microscope on the Microfinance Business Environment, EIU, The Economist Group, London.

Gonzalez, A. (2010) ‘Microfinance funders profiles: A short guide for young and small institutions still looking for a match’, MIX Data Brief 6.

Intellecap (2010) Indian Microfinance Crisis of 2010: Turf War or a Battle of Intentions? white paper, Intellecap, Mumbai.

Kenis, P. and Oerlemans, L. (2008) ‘The social networks perspective’, in S. Cropper, M. Ebers, C. Huxham and P.S. Ring (eds), The Oxford Handbook of Inter-Organisational Relationships, Oxford University Press, Oxford.

Ledgerwood, J. and White, V. (2006) Transforming Microfinance Institutions: Providing Full Financial Services to the Poor, World Bank, Washington, DC.

Levy, F. (2002) ‘Apex institutions in microfinance’, CGAP Occasional Paper 6.

Lok Capital (2010) Microfinance Industry in India, Lok Capital, Gurgaon, India.

MixMarket (2010) ‘Microfinance institutions data: Indicators and funding structure databases’ [website], <http://www.mixmarket.org/mfi≯ [last accessed 24 August 2010]. http://www.mixmarket.org/mfi

Srinivasan N. (2009) Microfinance India: State of the sector report, Sage, New Delhi.

Triodos (2007) Tanzania: Country Scan Microfinance, Triodos Facet, Netherlands.