institution’s portion of the risk pool, but donor funds would serve as a backstop. These bolstered reserves would stand against microfinance losses, while the structure of the shared match would preserve appropriate incentives. Microfinance borrowers could be required to pay apportion of the microfinance institution's contribution to the loan loss reserve.90 The presence of the loan loss reserves may reduce capital market concerns about microfinance volatility and thus draw more funding into microfinance, while overall low loss rates experienced thus far should keep actual loan-loss fund distributions to a relatively low level.