Changes of microcredit outreach depth in Latin America regions and its enlightenment to China

Through panel data analysis, the authors found that the improvement of microcredit commercialization in Latin American regions resulted in changes of microcredit outreach depth to some extent and the microfinance institutions' deviation from their original target customer, which gives some lessons to China. This deviation is related to the pursuit of profit maximization, market competition, risk-resisting ability and the pursuit of higher mobility of these microfinance institutions. Therefore, in China's microcredit practice, it is necessary to recognize the need and the diversity of microcredit. Meanwhile, during the course of commercialization, it would be better to assure the microcredit's depth of outreach through government's subsidies, improvement of credit technology and appropriate supervision of microfinance institutions to reduce costs and risks and to enhance the capacity of sustainable development.