The impressive expansion of microfinance (we can no longer speak about microcredit only) has been based on two guiding principles in the industry: creating specialized microfinance providers, and creating sustainable (i.e. bankable) agencies.
The first principle is based on the idea that microcredit and microfinance are, primarily, a way of doing finance that requires professional training in order to apply specialized expertise with regard to risk analysis and management for targeted population groups. The second principle is based on the idea that dependence on subsidies is a key obstacle that would hinder the unlimited growth microfinance institutions could experience, and would prevent them from serving thousands of millions of people that lack access to these services.