Paper

Measuring Performance of Microfinance Institutions: A Framework for Reporting, Analysis, and Monitoring (Presentation)

How can the performance of microfinance institutions be measured?
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This presentation follows the structure below:

  • Introduction;
  • Financial statements and reports;
  • Analytical adjustments;
  • Financial ratios and indicators;
  • Creating and analyzing performance-monitoring reports.

The presentation:

  • Introduces the exercise of developing standard definitions of financial terms, ratios and adjustments for microfinance;
  • Provides information about its purpose, history, future and use;
  • Lists the following types of financial statements with examples:
    • Income statement;
    • Balance sheet;
    • Cash flow;
    • Portfolio report;
    • Non-financial data report.
  • Describes the contents of each, as:
    • Brief explanation of its purpose;
    • Suggested format;
    • Definition of each account name.
  • Examines the following three types of adjustments:
    • Subsidies;
    • Inflation;
    • Portfolio at risk.
  • Provides examples of each;
  • Recommends 18 ratios that assess:
    • Profitability and sustainability;
    • Asset/liability management;
    • Portfolio quality, etc.
  • Provides examples of ratios and indicators.

It concludes by:

  • Explaining how performance-monitoring reports are created and analyzed;
  • Describing three types of analyses;
  • Providing some sample reports.

About this Publication

By SEEP Network, Alternative Credit Technologies, LLC
Published