THE MICROBANKING BULLETIN No. 20 - Microfinance Information ...

The MicroBanking Bulletin (MBB)The MicroBanking Bulletin is one of the principalpublications of MIX (Microfinance Information Exchange,Inc.). MIX is a non-profit company that works to supportthe growth and development of a healthy microfinancesector. MIX is supported by the Consultative Groupto Assist the Poor (CGAP), Citi Foundation, DeutscheBank Americas Foundation, Omidyar Network, Bill andMelinda Gates Foundation, and others. To learn moreabout MIX, please visit the website at www.themix.org.PurposeBy collecting financial and portfolio data providedvoluntarily by leading microfinance institutions (MFIs),organizing the database by peer groups, and reportingthis information, MIX is building infrastructure that iscritical to the development of the microfinance sector. Theprimary purpose of this database is to help MFI managersand board members understand their performance incomparison to other MFIs. Secondary objectives includeestablishing industry performance standards, enhancingthe transparency of financial reporting, and improvingthe performance of microfinance institutions.Benchmarking ServicesTo achieve these objectives, MIX provides the followingbenchmarking services: 1) the Bulletin’s Tables; 2)customized financial performance reports; and 3)network services.MFIs participate in the MicroBanking Bulletin benchmarksdatabase on a quid pro quo basis. They provide MIXwith information about their financial and portfolioperformance, as well as details regarding accountingpractices, subsidies, and the structure of their liabilities.Participating MFIs must submit substantiatingdocumentation, such as audited financial statements,annual reports, ratings, institutional appraisals, and othermaterials that help us understand their operations. Withthis information, we apply adjustments for inflation,subsidies and loan loss provisioning in order to createcomparable results. Data are presented in the Bulletinanonymously within peer groups. While MIX performsextensive checks on the consistency of data reported,we do not independently verify the information.In return, participating institutions receive acomparative performance report (CPR). Theseindividualized benchmark reports, which are animportant output of the benchmarks database, explainthe adjustments we made to the data, and compare theinstitution’s performance to that of peer institutions.MFI managers and board members use these toolsto understand their institution’s performance in acomparative context.The third core service is to work with networks ofmicrofinance institutions (i.e., affiliate, national, regional),central banks, and researchers in general to enhance theirability to collect and manage performance indicators.MIX provides this service in a variety of ways, including1) training these organizations to collect, adjust andreport data on retail MFIs at the local level and useMIX’s performance monitoring and benchmarkingsoftware, 2) collecting data on behalf of a network,and 3) providing customized data analysis to comparemember institutions to peer groups. This service tonetworks, regulatory agencies, and researchers allowsMIX to reach a wider range of MFIs in order to improvetheir financial reporting.New ParticipantsInstitutions that wish to participate in the Bulletindatabase should contact: info@themix.org, Tel +1 202659 9094, Fax +1 202 659 9095. Currently, the onlycriterion for participation is the ability to fulfill fairlyonerous reporting requirements. MIX reserves theright to establish minimum performance criteria forparticipation in the Bulletin database.SubmissionsThe Bulletin welcomes submissions of articles andcommentaries, particularly regarding analyticalwork on the financial and/or social performance ofmicrofinance institutions. Submissions may includereviews or summaries of more extensive workpublished elsewhere. Articles should not exceed3000 words. To submit an article, please contactDevang Sheth at dsheth@themix.org.DisclaimerNeither MIX nor MIX’s funders accept responsibilityfor the validity of the information presented orconsequences resulting from its use by third parties.