MICROBANKING BULLETIN - Microfinance Information Exchange

The MicroBanking Standards ProjectThe MicroBanking Bulletin is one of the principaloutputs of the MicroBanking Standards project,which is funded by the Consultative Group to Assistthe Poorest (CGAP) and managed by CALMEADOW.Project PurposeBy collecting financial and portfolio data providedvoluntarily by leading microfinance institutions(MFIs), organizing the data by peer groups, andreporting this information, this project is buildinginfrastructure that is critical to the development ofthe industry. The primary purpose of this databaseis to help MFI managers and board membersunderstand their performance in comparison withother MFIs. Secondary objectives includeestablishing industry performance standards,enhancing the transparency of financial reporting,and improving the performance of microfinanceinstitutions.In return, we prepare a confidential financialperformance report for each participating institution.These reports, which are the primary output of thisproject, explain the adjustments we made to thedata, and compare the institution’s performance toits peer group as well as to the whole sample ofproject participants. These reports are essentialtools for MFI managers and board members tobenchmark their institution’s performance.The third core service is to work with national andregional associations of microfinance institutions toenhance their ability to collect and manageperformance indicators. This service is provided in avariety of different ways, including teaching thesenetworks to collect, adjust and report data at thelocal level, collecting data on behalf of a network,and providing customized data analysis to comparemember institutions to external peer groups. Thisservice to networks allows us to help a wider rangeof MFIs to improve their financial reporting.Project ServicesTo achieve these objectives, the MicroBankingStandards project provides three services: 1)customized financial performance reports; 2) theMicroBanking Bulletin; and 3) network services.MFIs participate in this project on a quid pro quobasis. They provide us with information about theirfinancial and portfolio performance, as well asdetails regarding accounting practices, subsidies,and the structure of their liabilities. ParticipatingMFIs submit substantiating documentation, such asaudited financial statements, annual reports,program appraisals, and other materials that help usunderstand their operations. With this information,we apply adjustments for inflation, subsidies andloan loss provisioning to create comparable results.We do not independently verify the information.Neither CALMEADOW nor CGAP can acceptresponsibility for the validity of the informationpresented or consequences resulting from its use bythird parties.New ParticipantsOrganizations that wish to participate in theMicroBanking Standards project, either to receivecustomized reports or network services, shouldcontact CALMEADOW's Washington office: emailmicrobanking@calmeadowdc.com, Tel (202) 347-0039, Fax (202) 347-0078. Currently, the onlycriterion for participation is the ability to fulfill fairlyonerous reporting requirements. We reserve theright to establish minimum performance criteria forparticipation in the Bulletin.Bulletin SubmissionsThe Bulletin welcomes submissions of articles andcommentaries, particularly regarding analytical workon the financial performance of microfinanceinstitutions. Submissions may include reviews orsummaries of more extensive work elsewhere.Articles should not exceed 2,500 words. We alsoencourage readers to submit responses to thecontent of this and previous issues of the Bulletin.The MicroBanking Bulletin can be downloaded from CALMEADOW's website: www.calmeadow.com, and it isavailable in hard copy from PACT Publications—Email: books@pactpub.org, Website: www.pactpub.com,Tel: (212) 697-6222, Fax (212) 692-9748.