Financial Statement Analysis

This practical, hands-on program is designed to equip microfinance professionals and regulators with the skills to interpret, analyze, and supervise financial statements for MFIs in Sub-Saharan Africa.

Modules:

• Foundations of Financial Statements:
  • Microfinance business models, revenue/expense structures, regulatory reporting.
  • Understanding balance sheets, income statements, cash flows.
  • Accounting standards (IFRS vs. local GAAP), donor funds, provisioning.
  • Outcome: Ability to interpret MFI financial statements and compliance implications.
• Performance Analysis & Risk Indicators:
  • Key ratios: profitability, liquidity, portfolio quality, efficiency.
  • Trend analysis and linking financial health to operations.
  • Risk assessment: credit, liquidity, solvency, operational risks.
  • Outcome: Identify early warning signs of financial distress.
• Regulatory Oversight & Compliance:
  • Supervisory tools, prudential norms, capital and liquidity requirements.
  • Detecting red flags: under-provisioning, rapid growth, misclassification, high PAR30.
  • Stress testing, compliance reporting, enforcement actions.
  • Outcome: Draft supervisory recommendations and compliance plans.