LIC AAO 12 May 2013 Paper

What does the transformation of Peru’s non-profit organisation into bank illustrate?
(1) To compete with commercial banks, microfinance institutions should convert into banks and offer a wide variety of services.
(2) Microfinance institutions turn higher profits as banks since interest rates on loans are at their discretion.
(3) The poor prefer to go to large banks rather than NGOs to obtain loans.