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Improving Financial Sustainability Through Effective Credit Risk Management and Human Talent Development in Microfinance Institutions

Author

Listed:
  • Fabricio Miguel Moreno-Menéndez

    (Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru)

  • Vicente González-Prida

    (Department of Industrial Management I, University of Seville, 41092 Seville, Spain)

  • Diana Pariona-Amaya

    (Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru)

  • Victoriano Eusebio Zacarías-Rodríguez

    (Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru)

  • Víctor Zacarías-Vallejos

    (Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru)

  • Sara Ricardina Zacarías-Vallejos

    (Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru)

  • Luis Alberto Aguilar-Cuevas

    (Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru)

  • Lisette Paola Campos-Carpena

    (Faculty of Administrative and Accounting Sciences, Peruvian University of Los Andes, Huancayo 12000, Peru)

Abstract

This paper explores how credit risk management and human capital development sustain financial stability in microfinance institutions. Both qualitative and quantitative research methods allow this study to investigate credit risk management strategies while examining policies for inclusivity plus incentive plans along with debt portfolio selection efficiency. This research emphasizes that financial operations depend on skilled employees who require motivating interventions alongside training programs while developing ethical practices. The research discovers that organizations with strong credit risk management frameworks along with dedicated personnel achieve enhanced financial performances and reduced default incidents. This study confirms that microfinance institutions need both superior risk management along with human resource development systems to achieve sustainable development. This study enriches economic development research by demonstrating that implementing an equal mixture of financial and human resources produces successful economic results.

Suggested Citation

  • Fabricio Miguel Moreno-Menéndez & Vicente González-Prida & Diana Pariona-Amaya & Victoriano Eusebio Zacarías-Rodríguez & Víctor Zacarías-Vallejos & Sara Ricardina Zacarías-Vallejos & Luis Alberto Agui, 2025. "Improving Financial Sustainability Through Effective Credit Risk Management and Human Talent Development in Microfinance Institutions," IJFS, MDPI, vol. 13(2), pages 1-31, April.
    • Handle: RePEc:gam:jijfss:v:13:y:2025:i:2:p:60-:d:1630164
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