Analysis of The Causes and Consequences of MicrofinanceCrisis in Peru: A Proposed Strategic Approach

The microfinance industry is made up of a group of microfinance institutions (MFIs) ‎whose mission is to offer financial products and services to sectors underserved by ‎traditional banking. These institutions currently face various financial challenges. In this ‎context, the study focused on analyzing the causes and consequences of the ‎microfinance crisis in Peru. The methodology employed is descriptive and explanatory, ‎using documentary analysis. The population and sample consisted of 12 municipal ‎financial institutions. The results showed that, as of April 30, 2024, CMAC Sullana ‎stood out with the largest decline in ROE (-44.83%) and ROA (-5.38%), reflecting a ‎severe crisis. Other microfinance institutions also showed significant losses. It is ‎concluded that the microfinance crisis in Peru is due to poor risk management, high ‎delinquency rates, and limited product diversification, which increase the sector's ‎vulnerability. This has reduced access to credit for vulnerable populations, affecting local ‎development and exacerbating financial exclusion. A comprehensive solution based on ‎financial restructuring, product innovation, digital transformation, and strengthening risk ‎management is proposed to achieve a more sustainable and resilient system.