MFI Report

Non-banking deposit and credit organization ‘Women's Microfinance Network’, closed joint stock company (NDCO WMN) is a credit organization regulated by the Central Bank of Russia, which was registered and received a banking license for limited scope of operations in 2005. NDCO WMN was established as a result of the consolidation of assets and portfolio of four non-profit organizations for support of small business, existing since 1998. The consolidation was completed in December 2007. Credit operations began in January 2006 in Moscow through the central office and in April 2007 in other regions through the branches. • The decision for consolidation in one for-profit organization was made by the management of the four non-profit microfinance organizations because the new legal status would open new possibilities for growth and development. Advantages of working as one regulated, for-profit organization: greater appeal for investors in view of transparent activities, more cost-effective management system and control, standardization of internal procedures and processes, effective risk management as a result of the application of prudential norms of regulation. • NDCO WMN comprises Central office in Moscow and 11 branches in 5 regions of the Central Federal District of Russia. • Clients: predominantly women (more than 65%) • Main challenges: Difficulty attracting investments as a result of the financial crisis, Current banking legislation tailored for full-fledged banks is not adjusted to the specificity of the recently introduced form of NDCO with its limited scope of operations, as a result applied excess prudential norms increase the company's expenses and reduce productivity, Unavailability of accounting banking MIS designed with the view of NDCO specificity on the Russian market, as a result NDCO WMN is investing a lot of money to adjust available banking MIS to its needs. Cacher