One study by the United States Agency for International Development (USAID), published in March 2009 and entitled “Will the Bottom of the Pyramid Hit Bottom?” 1 states that (and I quote) the crisis may ultimately lead to a squeeze in MFIs’ profitability.
Due to the credit crunch, MFIs, especially those with limited deposit taking facilities, will have reduced access to commercial wholesale funds to finance their loan portfolios. Scarce private credit and higher borrowing costs would likewise stunt their portfolios. MFIs would also be competing for fewer and more expensive funds for their operations and expansion.