World Bank, MIX, and CGAP release most comprehensive survey to date on MFI perfo...
Washington , February, 20 2006 -
The World Bank, the Microfinance Information eXchange (MIX), and the Consultative Group to Assist the Poor (CGAP) have jointly published a report that brings to light the performance of a sector that revolutionized access to financial services as part of a project for the United Nations International Year of Microcredit 2005.
South Asian microfinance, known for reaching clients on a grand scale, is home to several of the fastest growing microfinance institutions in the world. Deploying a diversity of operating models, South Asian MFIs break productivity and efficiency records to deliver an ever increasing range of financial services to poor and excluded clients. But challenges to sector development also remain. A burgeoning microfinance sector in India depends almost exclusively on debt financing to build its credit services. In Pakistan, where only a few institutions cover costs, the sector remains mired in a cycle of low revenues and negative returns. In Nepal , Sri Lanka and elsewhere, loan portfolios of low or unknown quality drain institutional revenues and raise risks.
Performance and Transparency: A survey of microfinance in South Asia
discusses these and other challenges as it builds on the standard performance data of 125 South Asian institutions and nearly 600 MFIs worldwide to highlight the singularities of microfinance in the subcontinent while capturing the diversity of the sector. In addition to analyzing institutional performance, the report draws on local knowledge of the sector to examine the factors that facilitate our understanding of that performance -- from reporting standard dissemination and financial disclosures to performance monitoring initiatives -- painting a picture of the state of transparency in the region.
] to download a copy of the report.