Banks need to recruit and retain specialized staff to manage these programs. Issues of recruitment, training and performance linked incentives for bank personnel need special consideration. Cost effectiveness is a critical issue. Micro finance programs are costly to administer given the overheads of banks. Despite these apparent disabilities, if banks work on this, they are ideally suited to microfinance provision.
Balance sheet adjustments played a critical role in the impairment of financial systems in developed economies, by sharply reducing their capacity to provide finance. In turn, this probably contributed to both the magnitude and persistence of the slowdown in growth.