ANNOUNCEMENT: Bangladeshi MFIs project growth but undecided with funding and regulatory changes
What are 27 surveyed Bangladeshi MFIs expecting to happen within the microfinance market in the upcoming quarter?
Overall, the MFIs are projecting growth. For both projected borrower-levels and PAR (Portfolio-at-Risk) > 30 days, outliers cause a concentration of responses to appear around a lower range, although the actual growth rate differs from the projection. As for factors impacting changes in outreach and risk, MFIs proved to be undecided with funding and regulatory changes...
Despite concerns over client-indebtedness, the Azerbaijani market continues to grow with low risk levels. The national credit registry, which is run by the central bank, is fully operational, and the IFC is moving forward with a private registry with strong local support. Borrower levels, in turn, have increased more quickly than loan portfolio levels. Read more to find out which legal status is driving this trend.
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ANNOUNCEMENT: Kyrgyz MFIs expect borrower and GLP growth
After the volatility of 2012, MFIs are expecting borrowers and GLP to grow and PAR to remain in check. Political and regulatory changes as a result of the popular protests are the leading factor for MFIs for outreach, and client-indebtedness is the leading factor for...
ANNOUNCEMENT: Pakistani MFIs expect growth in borrowers and GLP
The 22 MFIs that responded to MIX’s Barometer survey expect growth in both borrowers and GLP for the coming quarter and year, but there is a strong divergence between expectations for individual portfolios and those of the country-level averages. The same applies to expectations for risk. The leading factor impacting outreach as cited by MFIs was...
ANNOUNCEMENT: Changes in Ecuador’s market and legislation
In Ecuador’s final quarter of 2012, the microfinance sector experienced many changes. While GLP and PAR levels remained flat, deposits continued growing. As for the market, two actors sought approval on their merges, while enacted legislation closed...
ANNOUNCEMENT: SKS resumes operations in Andhra Pradesh
With a Supreme Court appeal victory, SKS will be able to recommence operations in Andhra Pradesh and bypass the AP MFI Act. MFIN, a network of Indian NBFIs, will do the same on behalf of its members. Although investment in the sector remains tepid, the court victory should help. As for GLP trends...
Deposits continued to grow strongly, but what accounted for that growth?
Part of the surge in growth was due to a recategorization by Prasac in how it treats certain deposit accounts. Prasac also attributed some of its depositor growth to expansion plans and its drive to attain...
ANNOUNCEMENT: Kenya's mobile payments proliferation continues
The Kenyan microfinance continues to evolve rapidly around the proliferation of mobile payments. New partnerships continue to push the market forward, the most notable being between Equity Bank and MasterCard who plan to jointly issue 5 million credit/debit cards in Kenya by the end of 2013. For its part, the government has instituted an excise duty on mobile transactions. The increase in services and utilization of mobile money platforms has unfortunately also led to a rise in crime...
ANNOUNCEMENT: Growing confidence in social performance data
Updated 4/19/2013 - Finding reliable data on the social performance of MFIs is a perennial problem in microfinance. Although social ratings and audits do exist, they are far less common than their financial counterparts: of nearly 1,000 MFIs reporting social performance data to MIX Market to date, only twelve percent have submitted a social rating. Furthermore, even when such documents exist, they are not available on an annual basis. This means that the vast majority of social data on MFI activities is self-reported and, hence, open to criticism regarding its trustworthiness.
In order to meet industry demand for reliable social data, we have been working with investors and the Social Performance Task Force to find ways of increasing the overall level of confidence in the publicly available social performance data on MIX Market. Our Social Performance Document Validation methodology piloted last year and refined this year, is the result of these efforts. Thanks to this process, MFIs, funders, networks, and researchers alike will have access to more reliable social performance data upon which to base their analyses and business decisions.
The process itself is simple: when an MFI reports social data, we also ask that it submit corroborating evidence for this data in the form of policy documents, MIS reports, and/or third-party certifications. MIX’s team of SP analysts, along with certain partner organizations, then review these documents and confirm that they correspond to the data reported by the MFI. Once this review is complete, a summary of validated data points is attached to the MFI’s MIX Market profile, along with details on the types of documents used for validation.
Over the next few months MIX will launch a new analytical feature that will allow users to search for MFIs with validated social data and filter out those lacking such data. The upshot is that MIX’s users can now have more confidence in, and benefit to an even greater degree from the breadth, depth, and quality of the social performance data available on MIX.