Management of outstanding loans in decentralized financial systems in Mali

Abstract

Decentralized Financial Systems facilitate access to credit for people excluded from the traditional financial system. They specialize in financing small and medium-sized economic activities. The granting of credit remains the main activity of its microfinance institutions. Moreover the offer of DFIs does not stop there. Nowadays the financial services offered by DFIs go beyond microcredit, namely savings; insurance; money transfer.

Microcredit is aimed at micro-entrepreneurs who carry out an income-generating activity. However, in recent years, DFIs, like most financial structures, have experienced great difficulties due to the 2008 financial crisis, but also because of the increase in non-payment, which has led to the bankruptcy of several MFIs. This article makes it possible to see the contribution of the management of overdue credits in general and that of AMIFA-MALI in particular. Collection services are an indispensable means of mitigating these credit risks. We conducted a general acquaintance with the institution, an assessment of internal control, an examination of the accounts (analytical review, follow-up of procedural tests) which allowed us to identify the strengths and weaknesses, some of which could explain the difficulties related to the management of overdue appropriations. The causes of AMIFA-MALI's outstanding credits can be grouped into two categories.

Keywords: System; Financial ;Decentralized; AMIFA

Classification JEL : G2

Paper type: Empirical research