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					        Global Microscope on the Microfinance Business Environment 2011




Supported by                                            Publication Date: October 2011
OVERALL AND CATEGORY RANKINGS
                                                      OVERALL SCORE                      Regulatory Framework
                                                                                         Practices
COUNTRY HIGHLIGHT   <none>                              1   Peru                  67.8    =1
                                                        2   Bolivia               64.7    =1
REGION FILTER       All countries                       3   Pakistan              62.8    =1
                                                        4   Kenya                 60.3    =4
REGION HIGHLIGHT    <none>                              5   El Salvador           58.8    =4
                                                        6   Philippines           58.5    =4
                                                        7   Colombia              56.0    =7
Overall and category scores 0-100 where 100=best        8   Ecuador               55.1    =7
                                                        9   Uganda                53.7    =7
                                                      =10   Mexico                53.6   =10
                                                      =10   Panama                53.6   =10
Overall score for each country is calculated as the    12   Paraguay              53.3   =10
weighted sum of the "Regulatory Framework and          13   Cambodia              50.9   =10
Practices" and "Supporting Institutional               14   Brazil                49.2   =10
                                                       15   Rwanda                48.6   =10
Framework" category scores, reduced by the             16   Chile                 46.8   =16
adjustment factor.                                     17   Tanzania              46.5   =16
                                                       18   Honduras              46.3   =16
                                                       19   Ghana                 46.2   =16
The adjustment factor is based on each country's
                                                       20   Dominican Republic    46.1   =16
Stability score and represents a combined              21   Kyrgyz Republic       45.2   =16
assessment of the likelihood and potential impact      22   Armenia               45.1   =22
that political shocks or weak governance could         23   Uruguay               44.4   =22
                                                       24   Mozambique            43.9   =22
have on the Microfinance environment.
                                                       25   Nigeria               43.4   =22
                                                       26   Georgia               43.3   =22
The index consults the following formula in order     =27   Bosnia                43.1   =22
to calculate the reduction to the overall score for   =27   India                 43.1   =22
                                                       29   Nicaragua             42.3   =22
countries undergoing political instability:
                                                       30   Mongolia              41.8   =30
                                                       31   Tajikistan            41.1   =30
Percentage reduction to overall score =                32   Costa Rica            39.7   =30
[100 - overall stability score] x .25                  33   Indonesia             39.2   =30
                                                       34   Guatemala             39.0   =30
                                                       35   Azerbaijan            38.6   =30
                                                       36   Madagascar            37.0   =30
                                                       37   Morocco               33.7   =37
                                                       38   Lebanon               33.5   =37
                                                       39   China                 32.0   =37
                                                       40   Senegal               31.8   =37
                                                       41   Cameroon              31.6   =37
                                                       42   Egypt                 31.4   =42
                                                       43   Bangladesh            30.9   =42
                                                       44   Yemen                 30.1   =42
                                                       45   Jamaica               29.1   =42
                                                       46   Argentina             28.8   =42
                                                       47   Dem. Rep. of Congo    28.5   =42
                                                       48   Sri Lanka             27.4   =48
                                                      =49   Haiti                 26.6   =48
                                                      =49   Turkey                26.6   =50
                                                       51   Nepal                 26.1   =50
                                                       52   Venezuela             25.1   =50
                                                       53   Trinidad and Tobago   21.8   =50
                                                       54   Thailand              21.1    54
                                                       55   Vietnam               19.7    55
Regulatory Framework and          Supporting Institutional Framework   Adjustment Factor: Stability
Practices
    Pakistan               75.0    =1   Bolivia                 70.0     1   Costa Rica            92.5
    Philippines            75.0    =1   Peru                    70.0    =2   Chile                 90.0
    Uganda                 75.0    =3   Armenia                 60.0    =2   Uruguay               90.0
    Cambodia               70.0    =3   Colombia                60.0     4   Brazil                87.5
    Kenya                  70.0    =5   Chile                   55.0    =5   El Salvador           82.5
    Peru                   70.0    =5   Ecuador                 55.0    =5   Indonesia             82.5
    Bolivia                65.0    =5   El Salvador             55.0    =7   Colombia              80.0
    El Salvador            65.0    =5   Kenya                   55.0    =7   Jamaica               80.0
    Madagascar             65.0    =5   Mexico                  55.0    =7   Mexico                80.0
    Ecuador                60.0    =5   Pakistan                55.0    =7   Panama                80.0
    Kyrgyz Republic        60.0    =5   Panama                  55.0    =7   Trinidad and Tobago   80.0
    Mongolia               60.0   =12   Bosnia                  50.0   =12   Ghana                 77.5
    Paraguay               60.0   =12   Brazil                  50.0   =12   Guatemala             77.5
    Rwanda                 60.0   =12   Nicaragua               50.0   =12   Mongolia              77.5
    Tanzania               60.0   =12   Paraguay                50.0   =12   Tanzania              77.5
    Colombia               55.0   =12   Uruguay                 50.0   =16   Dominican Republic    75.0
    Honduras               55.0   =17   Dominican Republic      45.0   =16   Honduras              75.0
    Mexico                 55.0   =17   Ghana                   45.0   =16   Mozambique            75.0
    Mozambique             55.0   =17   Philippines             45.0   =16   Peru                  75.0
    Panama                 55.0   =20   Georgia                 40.0   =16   Turkey                75.0
    Tajikistan             55.0   =20   Honduras                40.0   =21   Argentina             72.5
    Azerbaijan             50.0   =20   India                   40.0   =21   China                 72.5
    Brazil                 50.0   =20   Nigeria                 40.0   =21   Paraguay              72.5
    China                  50.0   =20   Rwanda                  40.0   =21   Philippines           72.5
    Dominican Republic     50.0   =25   Argentina               35.0   =21   Rwanda                72.5
    Georgia                50.0   =25   Cambodia                35.0   =21   Vietnam               72.5
    Ghana                  50.0   =25   Costa Rica              35.0   =27   Bosnia                70.0
    India                  50.0   =25   Egypt                   35.0   =27   Morocco               70.0
    Nigeria                50.0   =25   Guatemala               35.0   =27   Senegal               70.0
    Cameroon               45.0   =25   Indonesia               35.0   =27   Uganda                70.0
    Costa Rica             45.0   =25   Jamaica                 35.0   =31   Armenia               67.5
    Guatemala              45.0   =25   Kyrgyz Republic         35.0   =31   Bolivia               67.5
    Indonesia              45.0   =25   Lebanon                 35.0   =31   Kenya                 67.5
    Nicaragua              45.0   =25   Morocco                 35.0   =31   Nigeria               67.5
    Senegal                45.0   =25   Mozambique              35.0   =31   Pakistan              67.5
    Yemen                  45.0   =25   Tanzania                35.0   =36   Cameroon              65.0
    Bangladesh             40.0   =25   Uganda                  35.0   =36   Ecuador               65.0
    Bosnia                 40.0   =25   Venezuela               35.0   =36   Georgia               65.0
    Chile                  40.0   =39   Azerbaijan              30.0   =36   Lebanon               65.0
    Dem. Rep. of Congo     40.0   =39   Sri Lanka               30.0   =40   Azerbaijan            62.5
    Uruguay                40.0   =39   Tajikistan              30.0   =40   Cambodia              62.5
    Armenia                35.0   =39   Trinidad and Tobago     30.0   =40   Haiti                 62.5
    Egypt                  35.0   =39   Turkey                  30.0   =40   India                 62.5
    Haiti                  35.0   =44   Bangladesh              25.0   =40   Tajikistan            62.5
    Lebanon                35.0   =44   Mongolia                25.0    45   Madagascar            57.5
    Morocco                35.0   =46   Cameroon                20.0   =46   Bangladesh            47.5
    Nepal                  35.0   =46   Dem. Rep. of Congo      20.0   =46   Kyrgyz Republic       47.5
    Sri Lanka              30.0   =46   Haiti                   20.0    48   Venezuela             45.0
    Vietnam                30.0   =46   Nepal                   20.0   =49   Nepal                 42.5
    Argentina              25.0   =46   Senegal                 20.0   =49   Thailand              42.5
    Jamaica                25.0   =46   Thailand                20.0    51   Dem. Rep. of Congo    40.0
    Thailand               25.0   =46   Yemen                   20.0    52   Sri Lanka             30.0
    Turkey                 25.0    53   China                   15.0   =53   Egypt                 17.5
    Venezuela              20.0   =54   Madagascar              10.0   =53   Nicaragua             17.5
    Trinidad and Tobago    15.0   =54   Vietnam                 10.0    55   Yemen                  5.0
Adjustment
     factor
     -1.88%
     -2.50%
     -2.50%
     -3.13%
     -4.38%
     -4.38%
     -5.00%
     -5.00%
     -5.00%
     -5.00%
     -5.00%
     -5.63%
     -5.63%
     -5.63%
     -5.63%
     -6.25%
     -6.25%
     -6.25%
     -6.25%
     -6.25%
     -6.88%
     -6.88%
     -6.88%
     -6.88%
     -6.88%
     -6.88%
     -7.50%
     -7.50%
     -7.50%
     -7.50%
     -8.13%
     -8.13%
     -8.13%
     -8.13%
     -8.13%
     -8.75%
     -8.75%
     -8.75%
     -8.75%
     -9.38%
     -9.38%
     -9.38%
     -9.38%
     -9.38%
    -10.63%
    -13.13%
    -13.13%
    -13.75%
    -14.38%
    -14.38%
    -15.00%
    -17.50%
    -20.63%
    -20.63%
    -23.75%
2011 RANK COMPARED WITH 2010 RANK

       Tables show country rank for Overall score in 2011 scorecard and 2010 scorecard (at default weighting)
       NB 2010 scores not directly comparable to 2011 due to change in indicator components.
       2011 ranks calculated excluding Egypt as this country was not present in 2010 scorecard.


       IMPROVED RANK                   2011    2010 Change                    LOWER RANK          2011   2010   Change
       Uruguay                            23      46      +23                 India                 27      8     -19
       Mongolia                           30      44      +14                 Nicaragua             29     13     -16
       Rwanda                             15      29      +14                 Yemen                 43     27     -16
       Mexico                             10      23      +13                 Ghana                 19      4     -15
       Brazil                             14      26      +12                 Guatemala             34     19     -15
       Lebanon                            38      49      +11                 Nepal                 50     35     -15
       Mozambique                         24      34      +10                 Bangladesh            42     33      -9
       Indonesia                          33      41       +8                 Kyrgyz Republic       21     12      -9
       Morocco                            37      45       +8                 Argentina             45     37      -8
       Jamaica                            44      51       +7                 Haiti                 48     40      -8
       Panama                             10      17       +7                 Tajikistan            31     25      -6
       Tanzania                           17      24       +7                 Cameroon              41     36      -5
       Kenya                               4      10       +6                 Georgia               26     21      -5
       Bosnia                             27      32       +5                 Madagascar            36     31      -5
       Azerbaijan                         35      38       +3                 Sri Lanka             47     42      -5
       Cambodia                           13      16       +3                 Philippines            6      2      -4
       Nigeria                            25      28       +3                 Costa Rica            32     29      -3
       Paraguay                           12      15       +3                 Thailand              53     50      -3
       Senegal                            40      43       +3                 Chile                 16     14      -2
       Venezuela                          51      54       +3                 Ecuador                8      6      -2
       Colombia                            7       9       +2                 Vietnam               54     52      -2
       Pakistan                            3       5       +2                 China                 39     38      -1
       Uganda                              9      11       +2
       Bolivia                             2       3       +1
       Dem. Rep. of Congo                 46      47       +1
       El Salvador                         5       6       +1
       Trinidad and Tobago                52      53       +1
efault weighting)




                    NO CHANGE            2011   2010   Change
                    Armenia                22     22       0
                    Dominican Republic     20     20       0
                    Honduras               18     18       0
                    Peru                    1      1       0
                    Turkey                 48     48       0
CATEGORY RANKING                            OVERALL SCORE
                                            Calculated score 0-100 (100=best)
COUNTRY HIGHLIGHT           <none>          Weighted sum of category scores


REGION FILTER               All countries   Rank                       Score / 100
                                                  1 Peru                      67.8
REGION HIGHLIGHT            <none>                2 Bolivia                   64.7
                                                  3 Pakistan                  62.8
SELECT INDICATOR                                  4 Kenya                     60.3
OVERALL SCORE                                     5 El Salvador               58.8
1) REGULATORY FRAMEWORK AND PRACTICES
2) SUPPORTING INSTITUTIONAL FRAMEWORK             6 Philippines               58.5
3) ADJUSTMENT FACTOR: STABILITY                   7 Colombia                  56.0
                                                  8 Ecuador                   55.1
                                                  9 Uganda                    53.7
                                             =10 Mexico                       53.6
                                             =10 Panama                       53.6
                                              12 Paraguay                     53.3
                                              13 Cambodia                     50.9
                                              14 Brazil                       49.2
                                              15 Rwanda                       48.6
                                              16 Chile                        46.8
                                              17 Tanzania                     46.5
                                              18 Honduras                     46.3
                                              19 Ghana                        46.2
                                              20 Dominican Republic           46.1
                                              21 Kyrgyz Republic              45.2
                                              22 Armenia                      45.1
                                              23 Uruguay                      44.4
                                              24 Mozambique                   43.9
                                              25 Nigeria                      43.4
                                              26 Georgia                      43.3
                                             =27 Bosnia                       43.1
                                             =27 India                        43.1




                                              0                   10     20
100 (100=best)


                  Rank                            Score / 100        Regional Averages                      Score / 100
                    29 Nicaragua                         42.3             All countries                           41.5
                    30 Mongolia                          41.8             Africa                                  42.9
                    31 Tajikistan                        41.1             All Asia                                37.8
                    32 Costa Rica                        39.7             East Asia                               37.6
                    33 Indonesia                         39.2             Eastern Europe and Central Asia         40.4
                    34 Guatemala                         39.0             Latin America and the Caribbean         45.1
                    35 Azerbaijan                        38.6             Middle East and North Africa            32.2
                    36 Madagascar                        37.0             South Asia                              38.0
                    37 Morocco                           33.7
                    38 Lebanon                           33.5
                    39 China                             32.0
                    40 Senegal                           31.8
                    41 Cameroon                          31.6
                    42 Egypt                             31.4
                    43 Bangladesh                        30.9
                    44 Yemen                             30.1
                    45 Jamaica                           29.1
                    46 Argentina                         28.8
                    47 Dem. Rep. of Congo                28.5
                    48 Sri Lanka                         27.4
                   =49 Haiti                             26.6
                   =49 Turkey                            26.6
                    51 Nepal                             26.1
                    52 Venezuela                         25.1
                    53 Trinidad and Tobago               21.8
                    54 Thailand                          21.1
                    55 Vietnam                           19.7




             30                40            50                 60   70                80           90          100
INDICATOR SCORES                                                       Regulatory Framework and Practices :: Regulation and sup
                                                                       Are regulations and supervision in the country co
COUNTRY HIGHLIGHT                     <none>


REGION FILTER                         All countries


REGION HIGHLIGHT                      <none>

SELECT INDICATOR

1.1)   Regulation and supervision of microcredit portfolios
1.2)   Formation of regulated/supervised microcredit institutions
1.3)   Formation/operation of non-regulated microcredit institutions      No such regulations exist or
1.4)   Regulatory and supervisory capacity for microfinance               regulations are prohibitive
1.5)   Regulatory framework for deposit-taking
2.1)   Accounting transparency
2.2)   Client Protection: Transparency in pricing
2.3)   Client Protection: Dispute resolution
2.4)   Credit bureaus                                                                                    1
2.5)   Policy and practice for financial transactions through agents
3.1)   Political shock to microfinance                                                                   1
                                                                                                         1
                                                                                                         1
                                                                                                         1
                                                                                                         1
                                                                                                         1
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
                                                                                                         0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
k and Practices :: Regulation and supervision of microcredit portfolios
nd supervision in the country conducive to microcredit provision by banks and other established financial institutions?




                                                        Regulations create at least two such
             Regulations create serious obstacles                                                   Regulations create minor obstacles
                                                                 obstacles for MFIs




             Egypt                                  1   Argentina                              1   Azerbaijan                            1
             Jamaica                                1   Armenia                                1   Bolivia                               1
             Sri Lanka                              1   Bangladesh                             1   Cameroon                              1
             Thailand                               1   Bosnia                                 1   Chile                                 1
             Trinidad and Tobago                    1   Brazil                                 1   Georgia                               0
             Venezuela                              1   China                                  1   Ghana                                 0
             Vietnam                                1   Colombia                               1   Guatemala                             0
                                                    1   Costa Rica                             1   India                                 0
                                                    1   Dominican Republic                     1   Indonesia                             0
                                                    1   Dem. Rep. of Congo                     1   Kyrgyz Republic                       0
                                                    1   Ecuador                                1   Madagascar                            0
                                                    1   El Salvador                            1   Mexico                                0
                                                    1   Haiti                                  1   Mongolia                              0
                                                    1   Honduras                               1   Nigeria                               0
                                                    1   Lebanon                                1   Pakistan                              0
                                                    1   Morocco                                1   Panama                                0
                                                    1   Mozambique                             1   Paraguay                              0
                                                    1   Nepal                                  1   Peru                                  0
                                                    1   Nicaragua                              1   Rwanda                                0
                                                    1   Senegal                                1   Tajikistan                            0
                                                    1   Turkey                                 1   Tanzania                              0
                                                    1   Uruguay                                0                                         0
                                                    1   Yemen                                  0                                         0
                                                    0                                          0                                         0
                                                    0                                          0                                         0
                                                    0                                          0                                         0
                                                    0                                          0                                         0
                                                    0                                          0                                         0
                                                    0                                          0                                         0
                                                    0                                          0                                         0
                                                    0                                          0                                         0
                                                    0                                          0                                         0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
0   0   0
tablished financial institutions?




            Regulations present no significant
                        obstacles




           Cambodia
           Kenya
           Philippines
           Uganda
INDICATOR RANKING                                                    OVERALL SCORE
                                                                     Rating 0-100 (100=best)
COUNTRY HIGHLIGHT                  <none>

                                                                     Weighted sum of category scores
REGION FILTER                      All countries


REGION HIGHLIGHT                   <none>
                                                                     Rank                         Score / 100
SELECT INDICATOR                                                        1 Peru                          67.8
OVERALL SCORE                                                           2 Bolivia                       64.7
1) REGULATORY FRAMEWORK AND PRACTICES
1.1) Regulation and supervision of microcredit portfolios               3 Pakistan                      62.8
1.2) Formation of regulated/supervised microcredit institutions         4 Kenya                         60.3
1.3) Formation/operation of non-regulated microcredit institutions
1.4) Regulatory and supervisory capacity for microfinance               5 El Salvador                   58.8
1.5) Regulatory framework for deposit-taking                            6 Philippines                   58.5
2) SUPPORTING INSTITUTIONAL FRAMEWORK
2.1) Accounting transparency                                            7 Colombia                      56.0
2.2) Client Protection: Transparency in pricing                         8 Ecuador                       55.1
2.3) Client Protection: Dispute resolution
2.4) Credit bureaus                                                     9 Uganda                        53.7
2.5) Policy and practice for financial transactions through agents
                                                                      =10 Mexico                        53.6
3) ADJUSTMENT FACTOR: STABILITY
3.1) Political shock to microfinance                                  =10 Panama                        53.6
3.2) Political stability
                                                                       12 Paraguay                      53.3
DEPENDENT VARIABLES
DP1) Number of borrowers as % of population                            13 Cambodia                      50.9
DP2) Number of borrowers as % of self-employed
                                                                       14 Brazil                        49.2
DP3) Number of borrowers as % of poor population
PERFORMANCE INDICATORS                                                 15 Rwanda                        48.6
FP) FINANCIAL PERFORMANCE
FP1) Weighted average return on assets (ROA)                           16 Chile                         46.8
FP2) Median return on assets (ROA)                                     17 Tanzania                      46.5
OU) OUTREACH
OU1) Portfolio size, US$                                               18 Honduras                      46.3
OU2) Average loan balance as a % of GNI per capita                     19 Ghana                         46.2
OU3) Y-O-Y growth in number of borrowers
OU4) Growth on GLP                                                     20 Dominican Republic            46.1
DE) DEPOSITS                                                           21 Kyrgyz Republic               45.2
DE1) Number of deposit accounts
DE2) Loan/deposit ratio                                                22 Armenia                       45.1
DE3) Average deposit balance, US$                                      23 Uruguay                       44.4
DE4) Growth on deposits
DE5) Average deposit account balance / GNI per capita                  24 Mozambique                    43.9
EF) EFFICIENCY                                                         25 Nigeria                       43.4
EF1) Borrowers per staff member
EF2) Cost per loan, US$                                                26 Georgia                       43.3
EF3) Cost per borrower, US$                                           =27 Bosnia                        43.1
RK) RISK
RK1) Portfolio at risk > 30 days                                      =27 India                         43.1
RK2) Percent of write-offs
                                                                       29 Nicaragua                     42.3
                                                                       30 Mongolia                      41.8
                                                                       31 Tajikistan                    41.1
                                                                       32 Costa Rica                    39.7
                                                                       33 Indonesia                     39.2
                                                                       34 Guatemala                     39.0
                                                                       35 Azerbaijan                    38.6
                                                                       36 Madagascar                    37.0
                                                                       37 Morocco                       33.7
                                                                       38 Lebanon                       33.5
 39 China                 32.0
 40 Senegal               31.8
 41 Cameroon              31.6
 42 Egypt                 31.4
 43 Bangladesh            30.9
 44 Yemen                 30.1
 45 Jamaica               29.1
 46 Argentina             28.8
 47 Dem. Rep. of Congo    28.5
 48 Sri Lanka             27.4
=49 Haiti                 26.6
=49 Turkey                26.6
 51 Nepal                 26.1
 52 Venezuela             25.1
 53 Trinidad and Tobago   21.8
 54 Thailand              21.1
 55 Vietnam               19.7
cores




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COUNTRY PROFILE

SELECT COUNTRY
Argentina
Armenia
Azerbaijan
Bangladesh
Bolivia
Bosnia
Brazil
Cambodia
Cameroon
Chile
China
Colombia
Costa Rica
Dominican Republic
Dem. Rep. of Congo
Ecuador
Egypt
El Salvador
Georgia
Ghana
Guatemala




SELECT INDICATOR
1.1) Regulation and supervision of microcredit portfolios
1.2) Formation of regulated/supervised microcredit institutions
1.3) Formation/operation of non-regulated microcredit institutions
1.4) Regulatory and supervisory capacity for microfinance
1.5) Regulatory framework for deposit-taking
2.1) Accounting transparency
2.2) Client Protection: Transparency in pricing
2.3) Client Protection: Dispute resolution
2.4) Credit bureaus
2.5) Policy and practice for financial transactions through agents
3.1) Political shock to microfinance
Argentina
SCORECARD                                                                                   Rank / 55 Score / 100
OVERALL SCORE                                                                                     46          28.8
Regulatory Framework and Practices                                                               =50          25.0
  Regulation and supervision of microcredit portfolios                                           =26          50.0
  Formation of regulated/supervised microcredit institutions                                     =42          25.0
  Formation/operation of non-regulated microcredit institutions                                  =38          25.0
  Regulatory and supervisory capacity for microfinance                                           =33          25.0
  Regulatory framework for deposit-taking                                                        =50           0.0
Supporting Institutional Framework                                                               =25          35.0
  Accounting transparency                                                                        =22          50.0
  Client Protection: Transparency in pricing                                                     =34          25.0
  Client Protection: Dispute resolution                                                           =6          50.0
  Credit bureaus                                                                                 =11          50.0
  Policy and practice for financial transactions through agents                                  =45           0.0
Adjustment Factor: Stability                                                                     =21          72.5
  Political shock to microfinance                                                                 =1         100.0
  Political stability                                                                            =23          45.0

REGULATION AND SUPERVISION OF MICROCREDIT PORTFOLIOS
The Superintendency of Financial Institutions of the Banco Central de la República Argentina (BCRA, the Central
Bank) is the main formal regulator for the overall financial system. Microfinance was until recently a completely
non-regulated industry; institutions operating within it are either Sociedades Anónimas (SAs, limited companies) or
non-governmental organisations (NGOs). Existing institutions, such as banks or NGOs, may form SAs, which can
operate as non-regulated institutions allowed to provide credit and are subject to lower taxation. However, in
December 2008 a Central Bank circular took important first steps toward regulating microcredit. It recognised the
activity for the first time, allowed banks to grant microcredit directly to clients rather than through formation of
another SA and permitted banks to hold up to 100% of the shares in an SA. It also allowed and explicitly
differentiated banks’ efforts to provide second-tier funding to microfinance institutions (as opposed to other, non-
microfinance institutions), ultimately easing conditions for banks to lend money to non-regulated microfinance
institutions (NGOs and SAs). Finally, the circular even enabled NGOs and SAs to raise funds on capital markets to
facilitate funding. While immediate impacts were somewhat obscured by the global recession and a general
tightening of liquidity in the country’s banking system, evidence is mounting of positive, if not overwhelming,
impacts. Banks have slowly increased their presence in the sector (such as Banco de Provincia with its new
microfinance unit) and greater access to non-public funding is now available for NGO MFIs, as several domestic
and foreign banks have opened or expanded on-lending to NGO MFIs. Documentation requirements were also
eased by the 2008 circular, and capital-adequacy standards generally do not apply, since SAs are non-prudentially-
regulated, and in any event are considered adequate. Still, the circular’s definition of microcredit is seen by some
as too broad and banks still face a labour contracts burden that prevents personnel from working outside branches
(which some circumvent by setting up as Sociedades Comerciales (SCs), which have more labour flexibility) and
high indirect labour costs, given social charges. Although public institutions are in principle second-tier and there
are no floors or ceilings on interest rates, they introduce distortion into market interest rates and competition by
requiring institutions to which they on-lend to apply administratively determined rates (currently 6%) and also by
offering concessional rates in loans from government programmes that can be as low as one-quarter of those
charged commercially. The state also injects competitive distortion by offering financing to non-profit
organisations at a subsidized rate, on the condition that that institution offers microcredit at a capped rate, which
is often at a level that does not cover operating costs for these organisations. There is no general cap on interest
rates, although rates tend to be high (at between 40-80% per annum), reflecting the high cost of credit in an
inflationary economy. A high tax burden (such as a tax on banking operations for internal administration) also
remains onerous, as well as provincial-level restrictions on the share of capital that may be held by foreign
institutional investors (first adopted in 2005 at 4% by Ciudad Autónoma de Buenos Aires and since emulated by
other provinces).

(Banco Central, December 2010; Personal interviews: June 2011)
inflationary economy. A high tax burden (such as a tax on banking operations for internal administration) also
remains onerous, as well as provincial-level restrictions on the share of capital that may be held by foreign
institutional investors (first adopted in 2005 at 4% by Ciudad Autónoma de Buenos Aires and since emulated by
other provinces).

(Banco Central, December 2010; Personal interviews: June 2011)
PERFORMANCE INDICATORS                                                         DATA *
 FINANCIAL PERFORMANCE
   Weighted average return on assets (ROA)                                      -2.8%
   Median return on assets (ROA)                                               -15.2%
 OUTREACH
   Portfolio size, US$                                                        779,936
   Average loan balance as a % of GNI per capita                                 5.4%
   Y-O-Y growth in number of borrowers                                          17.9%
   Growth on GLP                                                                46.8%
 DEPOSITS
   Number of deposit accounts                                                         0
   Loan/deposit ratio                                                               3.9
   Average deposit balance, US$
   Growth on deposits                                                           32.7%
   Average deposit account balance / GNI per capita
 EFFICIENCY
   Borrowers per staff member                                                     64.4
   Cost per loan, US$                                                            312.4
   Cost per borrower, US$                                                        352.0
 RISK
   Portfolio at risk > 30 days                                                   5.2%
   Percent of write-offs                                                        2.03%
 REPORTING
   Number of reporting institutions                                                  13

* All data is for 2010 or the latest available year. Data is obtained from MIX market.
** Except for the weighted average of the ROA, all data is calculated as the median.
COUNTRY DETAIL                                                                SELECT COUNTRY




  Argentina                                                                              Data



  Regulatory Framework and Practices
   Regulation and supervision of microcredit portfolios


   Regulations create at least two such obstacles for MFIs                           2

   Formation of regulated/supervised microcredit institutions


   Regulations exist but multiple obstacles make formation very difficult            1

   Formation/operation of non-regulated microcredit institutions


   Unregulated institutions face many obstacles to establishing operations;          1

   Regulatory and supervisory capacity for microfinance


   Limited capacity to regulate and supervise;                                       1

   Regulatory framework for deposit-taking


   Regulated institutions may not take deposits;                                     0


  Supporting Institutional Framework
   Accounting transparency


   National standards exist but are adhered to by only some institutions             2
 Client Protection: Transparency in pricing


 Regulations are technically in place but they are not followed or enforced;                    1

 Client Protection: Dispute resolution


 A mechanism for dispute resolution exists, but it does not work well in practice (e.g. it is   2
 too costly, time-consuming, unfair, or is only available to a limited number of potential
 users);

 Credit bureaus


 Credit bureaus are weak in some of these ways;                                                 2

 Policy and practice for financial transactions through agents


 The environment is not conducive and there are no existing agent mechanisms in the             0
 country;




Adjustment Factor: Stability
 Political shock to microfinance


 The country has been free of any political developments affecting microfinance                 0
 operations


 Political stability

                                                                                                55
LECT COUNTRY Argentina

             Long text notes are abridged, double click an indicator, or click the button below to view full text. MACROS must be enabled.

                                                                                       Notes




               The Superintendency of Financial Institutions of the Banco Central de la República Argentina (BCRA, the Central Bank) is the main formal regulator for the
               overall financial system. Microfinance was until recently a completely non-regulated industry; institutions operating within it are either Sociedades
               Anónimas (SAs, limited companies) or non-governmental organisations (NGOs). Existing institutions, such as banks or NGOs, may form SAs, which can
               operate as non-regulated institutions allowed to provide credit and are subject to lower taxation. However, in December 2008 a Central Bank circular …




               There are no specialised juridical vehicles for microfinance in Argentina, although the limited company form, unregulated by theCentral Bank, has been
               used for microfinance purposes by both downscaling banks and NGOs. Although credit co-operatives were created by a September 2007 law as a means
               to channel credit to micro, small and medium-sized enterprises (and one that could also capture deposits from members), only two had been authorised
               by the Central Bank as of September 2009 and apparently none with any significant microfinance presence. The vehicle appears unattractive to NGOs and
               SAs s …




               Administratively, forming an NGO can take up to one year. Each province has its own authority that registers NGOs. Although it is not difficult to establish
               a non-regulated institution that offers microfinance services, and while NGOs can set market interest rates (subject to the loose caps specified in the first
               indicator) they face competition from SAs that receive second-tier public loans that require them to fix their interest rates (6% currently) and that also
               access their own, more limited line of second-tier public on-lending, which comes with similarly problematic interest rate caps. N …




               Specialised expertise and methodologies for microfinance have generally been lacking and five government entities compete with each other in shaping
               the industry in practice: the Central Bank/Financial Superintendency; the Ministry of Finance (which has a second-tier funding programme for SAs); the
               General Inspectorate of Justice of the Ministry of Justice (which regulates the formation and organisation—but not the finances—of SAs and NGOs);
               FONCAP, a public-private enterprise; and the Ministry of Social Development (which has a second-tier funding scheme for NGO-MFIs). This creates
               considerab …




               Institutions operating in microfinance are not allowed to capture deposits of any type, and at present, there is no distinction made between the traditional
               saver and potential microfinance savers, so this reduces the possibilities of increasing the capacity for microfinance institutions to capture deposits. There
               is no legal minimum deposit requirement for banks, the problem is that the costs of maintaining an account are not offset by the remuneration of the
               account for a consumer. This means that for a saver, a deposit essentially ends up having a "negative" impact. There may well be a modi …




               There is a large gap between the standards followed by regulated (non-microfinance) institutions and MFIs (mostly NGOs and SAs), which are non-
               regulated and have laxer norms and practices. Commercial organisations must submit annual audited accounts under local standards (which are not yet
               aligned to international standards). This information must be submitted to tax and corporation regulators in the country. Non-regulated organisations are
               not subject to auditing standards, aside from those that operate with the aid of international funding, of which in Argentina there are few. The Buenos Air
               …
There is no requirement to publish effective rates, and practices are very uneven. The RADIM network reports that its SA and NGO members divulge rates
clearly in loan agreements. External audits have begun to appear with more frequency, however, owing to pressure from international funders and self-
regulation through MFI networks, such as RADIM, who have been by holding conferences to promote the Transparent Pricing Initiative in Argentina.
However, there is less clarity with respect to fees charged by microfinance institutions. Financial institutions do have a requirement to clearly publish f …




There is no specific regulatory framework in place that may allow a regulation such as the Consumer Protection Act to be a tool for borrower protection.
As such, in Argentina, disputes are resolved in the courts, with all the time and money that may entail for a borrower. However, the legal framework
currently favours the borrower, and a private mediation process must be completed before going to court. The number of cases that reach the court are
quite low and there is a large percentage of dispute cases that are resolved before they reach court.

(Personal interviews, June 2011)



The country has 26 private bureaus, plus a public registry, but none is specific to microfinance. Most of the data come from the formal financial system,
are often outdated, and are consequently of limited utility, although lately some improved information from small-scale consumer lending has become
available. The market in Argentina is not yet as developed in terms of the issue of monitoring indebtedness, a situation that occurs frequently among
microfinance institutions. There is no developed credit bureau (there is incipient negative information exchanged between 3 or 4 institutions) to an …




Argentina is still behind in the use of technology applied to microcredit. What have been used in recent years are the services of collection agents, to
increase the points and times in which customers can make their payments. There is still no development in terms of offering microcredit through mobile
phone or wireless means and there is, as yet, no innovative channel of development for microfinance. The market for microfinance in Argentina is still
quite underdeveloped; committing time and resources to making it more sophisticated is not currently a priority for the regulator or the financ …




Although access to financing remains a weakness, there are no special circumstances that could generate extreme tension in the short term. Despite the
general lack of regulatory oversight for microfinance in Argentina, there is no sign of any demand-side movement that may have an adverse effect on
development of the industry. Continued commitment to expansionary macroeconomic policies for political reasons, despite the significant economic
distortions these have created, create some risk of producing a loss of confidence and renewed capital flight. The election in October 2011 should be
orderl …



Political stability is obtained from the Economist Intelligence Unit's Risk Briefing. This indicator includes an assessment of social unrest, orderly transfers,
opposition stance, excessive executive authority, and international tensions.
COUNTRY COMPARISON                                                 COMPARE Argentina               WITH




                                                                     Argentina         Argentina
  OVERALL SCORE                                                        28.8             28.8
  REGULATORY FRAMEWORK AND PRACTICES                                   25.0             25.0
   Regulation and supervision of microcredit portfolios                50.0             50.0
   Formation of regulated/supervised microcredit institutions          25.0             25.0
   Formation/operation of non-regulated microcredit institutions       25.0             25.0
   Regulatory and supervisory capacity for microfinance                25.0             25.0
   Regulatory framework for deposit-taking                              0.0              0.0
  SUPPORTING INSTITUTIONAL FRAMEWORK                                   35.0             35.0
   Accounting transparency                                             50.0             50.0
   Client Protection: Transparency in pricing                          25.0             25.0
   Client Protection: Dispute resolution                               50.0             50.0
   Credit bureaus                                                      50.0             50.0
   Policy and practice for financial transactions through agents        0.0              0.0
  ADJUSTMENT FACTOR: STABILITY                                         72.5             72.5
   Political shock to microfinance                                    100.0            100.0
   Political stability                                                 45.0             45.0
Argentina




PERFORMANCE INDICATORS                               Argentina   Argentina
 FINANCIAL PERFORMANCE
  Weighted average return on assets (ROA)               -2.8%       -2.8%
  Median return on assets (ROA)                        -15.2%      -15.2%
 OUTREACH
  Portfolio size, US$                                 779,936     779,936
  Average loan balance as a % of GNI per capita            0.1         0.1
  Y-O-Y growth in number of borrowers                   17.9%       17.9%
  Growth on GLP                                         46.8%       46.8%
 DEPOSITS
  Number of deposit accounts                                0           0
  Loan/deposit ratio                                       3.9         3.9
  Average deposit balance, US$
  Growth on deposits                                    32.7%       32.7%
  Average deposit account balance / GNI per capita
 EFFICIENCY
  Borrowers per staff member                             64.4        64.4
  Cost per loan, US$                                    312.4       312.4
  Cost per borrower, US$                                352.0       352.0
 RISK
  Portfolio at risk > 30 days                            5.2%        5.2%
  Percent of write-offs                                  2.0%        2.0%
SCATTER CHART                                                              OVERALL SCORE
                                                                           Rating 0-100 (100=best)
COUNTRY HIGHLIGHT              <none>

                                                                           OVERALL SCORE
                               All countries
REGION FILTER                                                              Rating 0-100 (100=best)

REGION HIGHLIGHT               <none>                                      CORRELATION(X,Y)           1.00
                                                                                    80
SELECT X-AXIS INDICATOR
OVERALL SCORE
  REGULATORY FRAMEWORK AND PRACTICES
    Regulation and supervision of microcredit portfolios                            70
    Formation of regulated/supervised microcredit institutions
    Formation/operation of non-regulated microcredit institutions
    Regulatory and supervisory capacity for microfinance
    Regulatory framework for deposit-taking
  SUPPORTING INSTITUTIONAL FRAMEWORK                                                60
    Accounting transparency
    Client Protection: Transparency in pricing
    Client Protection: Dispute resolution
    Credit bureaus
    Policy and practice for financial transactions through agents                   50
  ADJUSTMENT FACTOR: STABILITY



                                                                    OVERALL SCORE
    Political shock to microfinance
    Political stability
                                                                                    40
SELECT Y-AXIS INDICATOR
OVERALL SCORE
  REGULATORY FRAMEWORK AND PRACTICES
    Regulation and supervision of microcredit portfolios
    Formation of regulated/supervised microcredit institutions                      30
    Formation/operation of non-regulated microcredit institutions
    Regulatory and supervisory capacity for microfinance
    Regulatory framework for deposit-taking
  SUPPORTING INSTITUTIONAL FRAMEWORK
    Accounting transparency                                                         20
    Client Protection: Transparency in pricing
    Client Protection: Dispute resolution
    Credit bureaus
    Policy and practice for financial transactions through agents                   10
  ADJUSTMENT FACTOR: STABILITY

   Show country labels (for highighted region)
   Show outliers (blue dots)                                                         0
                                                                                         0       10
      Argentina




20   30                40         50   60   70   80
                  OVERALL SCORE
     A note on the number of borrowers data:
                                                 Data
     for the number of microfinance borrowers comes
     from MIX market, while data for the number of
     self-employed is obtained from the Multilateral
     Investment Fund household surveys. The self-
     employed data is used as a proxy for the number
     of microenterprises and thus represents the total
     market potential in a given country. This data is
     only available for LAC countries. All borrower and
     microenterprise data proxies are for 2010 or the
     latest available year.




80
WEIGHTS

   SELECT WEIGHT PROFILE:            EIU Default
   Change weights by editing numbers in the yellow "Weight" column.
   Set a weight to zero to completely remove the influence of any indicator/category.


   CATEGORY WEIGHTS
   Regulatory Framework and Practices                                            1      50.0% |||||||||||||||||||||||||
   Supporting Institutional Framework                                            1      50.0% |||||||||||||||||||||||||

   INDICATOR WEIGHTS
   Regulatory Framework and Practices
     Regulation and supervision of microcredit portfolios                        1      20.0%      ||||||||||
     Formation of regulated/supervised microcredit institutions                  1      20.0%      ||||||||||
     Formation/operation of non-regulated microcredit institutions               1      20.0%      ||||||||||
     Regulatory and supervisory capacity for microfinance                        1      20.0%      ||||||||||
     Regulatory framework for deposit-taking                                     1      20.0%      ||||||||||
   Supporting Institutional Framework
     Accounting transparency                                                     1      20.0%      ||||||||||
     Client Protection: Transparency in pricing                                  1      20.0%      ||||||||||
     Client Protection: Dispute resolution                                       1      20.0%      ||||||||||
     Credit bureaus                                                              1      20.0%      ||||||||||
     Policy and practice for financial transactions through agents               1      20.0%      ||||||||||
NORMALISED SCORES

   All scores 0-100 where 100=best



                                                                              WEIGHT   Argentina   Armenia
            OVERALL SCORE                                                                   28.8      45.1
        1    REGULATORY FRAMEWORK AND PRACTICES                                50.0%        25.0      35.0
      1.1     Regulation and supervision of microcredit portfolios             20.0%        50.0      50.0
      1.2     Formation of regulated/supervised microcredit institutions       20.0%        25.0      50.0
      1.3     Formation/operation of non-regulated microcredit institutions    20.0%        25.0       0.0
      1.4     Regulatory and supervisory capacity for microfinance             20.0%        25.0      75.0
      1.5     Regulatory framework for deposit-taking                          20.0%         0.0       0.0
        2    SUPPORTING INSTITUTIONAL FRAMEWORK                                50.0%        35.0      60.0
      2.1     Accounting transparency                                          20.0%        50.0      75.0
      2.2     Client Protection: Transparency in pricing                       20.0%        25.0      75.0
      2.3     Client Protection: Dispute resolution                            20.0%        50.0      50.0
      2.4     Credit bureaus                                                   20.0%        50.0      75.0
      2.5     Policy and practice for financial transactions through agents    20.0%         0.0      25.0
        3    ADJUSTMENT FACTOR: STABILITY                                                   72.5      67.5
      3.1     Political shock to microfinance                                  50.0%       100.0     100.0
      3.2     Political stability                                              50.0%        45.0      35.0

              STABILITY ADJUSTMENT FACTOR                                                -6.88%     -8.13%
Azerbaijan   Bangladesh   Bolivia   Bosnia    Brazil   Cambodia   Cameroon      Chile    China
     38.6          30.9     64.7      43.1     49.2        50.9       31.6      46.8      32.0
     50.0          40.0     65.0      40.0     50.0        70.0       45.0      40.0      50.0
     75.0          50.0     75.0      50.0     50.0       100.0       75.0      75.0      50.0
     75.0          50.0     50.0      50.0     50.0        75.0       50.0      25.0      50.0
       0.0         50.0     75.0      50.0     50.0        50.0       25.0      50.0      25.0
     50.0          25.0     75.0      50.0     50.0        50.0       25.0      25.0      50.0
     50.0          25.0     50.0       0.0     50.0        75.0       50.0      25.0      75.0
     30.0          25.0     70.0      50.0     50.0        35.0       20.0      55.0      15.0
     75.0          50.0     50.0      75.0     50.0        75.0       50.0      75.0      50.0
     25.0          75.0    100.0      75.0     50.0        75.0       25.0      50.0       0.0
       0.0          0.0     75.0      50.0     50.0         0.0         0.0     75.0       0.0
     25.0           0.0     75.0      50.0     50.0         0.0         0.0     50.0      25.0
     25.0           0.0     50.0       0.0     50.0        25.0       25.0      25.0       0.0
     62.5          47.5     67.5      70.0     87.5        62.5       65.0      90.0      72.5
    100.0          50.0    100.0     100.0    100.0       100.0      100.0     100.0     100.0
     25.0          45.0     35.0      40.0     75.0        25.0       30.0      80.0      45.0

   -9.38%      -13.13%    -8.13%    -7.50%   -3.13%      -9.38%     -8.75%    -2.50%    -6.88%
                        Dominican   Dem. Rep. of
Colombia   Costa Rica    Republic         Congo    Ecuador     Egypt   El Salvador   Georgia   Ghana
    56.0        39.7         46.1          28.5       55.1      31.4          58.8     43.3     46.2
    55.0        45.0         50.0          40.0       60.0      35.0          65.0     50.0     50.0
    50.0        50.0         50.0          50.0       50.0      25.0          50.0     75.0     75.0
    50.0        50.0         50.0          50.0       75.0      25.0          75.0     75.0     50.0
    75.0        50.0         75.0          25.0       50.0      50.0          75.0       0.0    50.0
    50.0        25.0         25.0          25.0       75.0      50.0          50.0     75.0     25.0
    50.0        50.0         50.0          50.0       50.0      25.0          75.0     25.0     50.0
    60.0        35.0         45.0          20.0       55.0      35.0          55.0     40.0     45.0
    50.0        25.0         50.0          25.0       50.0      50.0          75.0     75.0     50.0
    50.0        50.0         50.0          25.0       50.0      25.0          50.0     50.0     25.0
    75.0        50.0         25.0          25.0       50.0      25.0          50.0     50.0     50.0
    75.0        50.0         75.0           0.0      100.0      50.0          75.0     25.0     25.0
    50.0          0.0        25.0          25.0       25.0      25.0          25.0       0.0    75.0
    80.0        92.5         75.0          40.0       65.0      17.5          82.5     65.0     77.5
   100.0       100.0       100.0           50.0      100.0       0.0         100.0    100.0    100.0
    60.0        85.0         50.0          30.0       30.0      35.0          65.0     30.0     55.0

  -5.00%      -1.88%       -6.25%       -15.00%    -8.75%    -20.63%      -4.38%     -8.75%    -5.63%
                                                                           Kyrgyz
Guatemala     Haiti   Honduras    India   Indonesia   Jamaica   Kenya    Republic   Lebanon
     39.0     26.6        46.3     43.1        39.2      29.1    60.3        45.2      33.5
     45.0     35.0        55.0     50.0        45.0      25.0    70.0        60.0      35.0
     75.0     50.0        50.0     75.0        75.0      25.0   100.0        75.0      50.0
     25.0     25.0        50.0     50.0        25.0      25.0    75.0        50.0      50.0
     50.0     75.0        75.0     50.0        50.0      25.0    75.0       100.0      50.0
     25.0      0.0        50.0     50.0        25.0      25.0    50.0        50.0      25.0
     50.0     25.0        50.0     25.0        50.0      25.0    50.0        25.0        0.0
     35.0     20.0        40.0     40.0        35.0      35.0    55.0        35.0      35.0
     75.0     25.0        50.0     50.0        75.0      75.0    75.0        50.0      50.0
     25.0     50.0        50.0     50.0        25.0      25.0    50.0        25.0      50.0
      0.0     25.0        25.0      0.0        25.0      50.0    50.0        25.0      50.0
     50.0      0.0        50.0     50.0        25.0       0.0    25.0        50.0        0.0
     25.0      0.0        25.0     50.0        25.0      25.0    75.0        25.0      25.0
     77.5     62.5        75.0     62.5        82.5      80.0    67.5        47.5      65.0
    100.0    100.0       100.0     50.0       100.0     100.0   100.0        50.0     100.0
     55.0     25.0        50.0     75.0        65.0      60.0    35.0        45.0      30.0

   -5.63%   -9.38%      -6.25%   -9.38%     -4.38%    -5.00%    -8.13%   -13.13%     -8.75%
Madagascar   Mexico   Mongolia   Morocco   Mozambique     Nepal   Nicaragua   Nigeria   Pakistan
      37.0     53.6      41.8       33.7         43.9      26.1        42.3     43.4        62.8
      65.0     55.0      60.0       35.0         55.0      35.0        45.0     50.0        75.0
      75.0     75.0      75.0       50.0         50.0      50.0        50.0     75.0        75.0
      75.0     50.0      50.0       75.0         50.0      75.0        50.0     50.0        75.0
      75.0     50.0      25.0        0.0         75.0      25.0        50.0     50.0        50.0
      25.0     50.0      75.0       50.0         50.0       0.0        50.0     25.0      100.0
      75.0     50.0      75.0        0.0         50.0      25.0        25.0     50.0        75.0
      10.0     55.0      25.0       35.0         35.0      20.0        50.0     40.0        55.0
      25.0     75.0      25.0       75.0         50.0      25.0        75.0     25.0        75.0
       0.0     75.0      50.0        0.0         50.0      50.0        75.0     50.0        75.0
       0.0     50.0      25.0        0.0         25.0       0.0        25.0     50.0        50.0
      25.0     50.0       0.0       75.0         25.0       0.0        50.0     25.0        25.0
       0.0     25.0      25.0       25.0         25.0      25.0        25.0     50.0        50.0
      57.5     80.0      77.5       70.0         75.0      42.5        17.5     67.5        67.5
     100.0    100.0     100.0      100.0        100.0      50.0         0.0    100.0      100.0
      15.0     60.0      55.0       40.0         50.0      35.0        35.0     35.0        35.0

   -10.63%   -5.00%     -5.63%    -7.50%       -6.25%   -14.38%    -20.63%    -8.13%     -8.13%
Panama    Paraguay     Peru   Philippines   Rwanda    Senegal   Sri Lanka   Tajikistan   Tanzania
   53.6       53.3     67.8          58.5      48.6      31.8        27.4         41.1       46.5
   55.0       60.0     70.0          75.0      60.0      45.0        30.0         55.0       60.0
   75.0       75.0     75.0         100.0      75.0      50.0        25.0         75.0       75.0
   50.0       50.0     75.0          75.0      75.0      50.0        50.0         75.0       25.0
   50.0       75.0     50.0          50.0      50.0      25.0        50.0         25.0      100.0
   50.0       50.0    100.0          75.0      50.0      50.0         0.0         50.0       50.0
   50.0       50.0     50.0          75.0      50.0      50.0        25.0         50.0       50.0
   55.0       50.0     70.0          45.0      40.0      20.0        30.0         30.0       35.0
   75.0       50.0     75.0          50.0      25.0      25.0        25.0         75.0       75.0
   50.0       50.0     75.0          50.0      25.0      25.0        25.0         50.0       25.0
   50.0       75.0     50.0          50.0      50.0      25.0        25.0          0.0       25.0
   75.0       50.0     75.0          25.0      50.0       0.0        25.0          0.0        0.0
   25.0       25.0     75.0          50.0      50.0      25.0        50.0         25.0       50.0
   80.0       72.5     75.0          72.5      72.5      70.0        30.0         62.5       77.5
  100.0      100.0    100.0         100.0     100.0     100.0         0.0       100.0       100.0
   60.0       45.0     50.0          45.0      45.0      40.0        60.0         25.0       55.0

-5.00%     -6.88%    -6.25%      -6.88%     -6.88%    -7.50%    -17.50%       -9.38%      -5.63%
           Trinidad and
Thailand        Tobago    Turkey   Uganda   Uruguay   Venezuela   Vietnam     Yemen
    21.1           21.8     26.6     53.7      44.4        25.1       19.7      30.1
    25.0           15.0     25.0     75.0      40.0        20.0       30.0      45.0
    25.0           25.0     50.0    100.0      50.0        25.0       25.0      50.0
    25.0            0.0     25.0     75.0      25.0        25.0       25.0      75.0
    25.0           25.0     25.0     50.0      25.0         0.0       50.0      50.0
     0.0            0.0     25.0     75.0      50.0        25.0       25.0      25.0
    50.0           25.0      0.0     75.0      50.0        25.0       25.0      25.0
    20.0           30.0     30.0     35.0      50.0        35.0       10.0      20.0
    25.0           50.0     75.0     50.0      50.0        75.0       25.0      50.0
    25.0           25.0     25.0     50.0      50.0        50.0       25.0       0.0
     0.0            0.0     25.0     25.0      75.0        25.0        0.0       0.0
    25.0           75.0     25.0     25.0      50.0         0.0        0.0      25.0
    25.0            0.0      0.0     25.0      25.0        25.0        0.0      25.0
    42.5           80.0     75.0     70.0      90.0        45.0       72.5       5.0
    50.0          100.0    100.0    100.0     100.0        50.0      100.0       0.0
    35.0           60.0     50.0     40.0      80.0        40.0       45.0      10.0

-14.38%         -5.00%    -6.25%   -7.50%    -2.50%    -13.75%     -6.88%    -23.75%
                                                Eastern   Latin America and the   Middle East and
All countries   Africa   All Asia   East Asia   Europe               Caribbean       North Africa   South Asia
        41.5     42.9       37.8        37.6       40.4                    45.1              32.2        38.0
        48.0     55.9       48.8        50.7       45.0                    46.4              37.5        46.0
        60.0     72.7       60.4        64.3       64.3                    54.8              43.8        55.0
        50.5     56.8       52.1        46.4       57.1                    42.9              56.3        60.0
        45.9     54.5       41.7        39.3       28.6                    51.2              37.5        45.0
        42.3     40.9       39.6        42.9       53.6                    41.7              37.5        35.0
        41.4     54.5       50.0        60.7       21.4                    41.7              12.5        35.0
        38.1     32.3       29.6        26.4       39.3                    46.9              31.3        34.0
        54.1     43.2       45.8        46.4       71.4                    58.3              56.3        45.0
        42.7     31.8       43.8        35.7       46.4                    51.2              18.8        55.0
        31.4     29.5       14.6        14.3       28.6                    45.2              18.8        15.0
        35.0     18.2       16.7        14.3       35.7                    53.6              37.5        20.0
        27.3     38.6       27.1        21.4       14.3                    26.2              25.0        35.0
        66.0     67.3       61.0        68.9       64.3                    73.7              39.4        50.0
        86.4     95.5       75.0        92.9       92.9                    92.9              50.0        50.0
        45.5     39.1       47.1        45.0       35.7                    54.5              28.8        50.0
INDICATOR DATA




           OVERALL SCORE
       1    REGULATORY FRAMEWORK AND PRACTICES
     1.1     Regulation and supervision of microcredit portfolios            Rating 0-4 (4=best)
     1.2     Formation of regulated/supervised microcredit institutions      Rating 0-4 (4=best)
     1.3     Formation/operation of non-regulated microcredit institutions   Rating 0-4 (4=best)
     1.4     Regulatory and supervisory capacity for microfinance            Rating 0-4 (4=best)
     1.5     Regulatory framework for deposit-taking                         Rating 0-4 (4=best)
       2    SUPPORTING INSTITUTIONAL FRAMEWORK
     2.1     Accounting transparency                                         Rating 0-4 (4=best)
     2.2     Client Protection: Transparency in pricing                      Rating 0-4 (4=best)
     2.3     Client Protection: Dispute resolution                           Rating 0-4 (4=best)
     2.4     Credit bureaus                                                  Rating 0-4 (4=best)
     2.5     Policy and practice for financial transactions through agents   Rating 0-4 (4=best)
       3    ADJUSTMENT FACTOR: STABILITY
     3.1     Political shock to microfinance                                 Rating 0-2 (0=best)
     3.2     Political stability                                             Rating 0-100 (0=best)
     DP DEPENDENT VARIABLES
    DP1   Number of borrowers as % of population                             %
    DP2   Number of borrowers as % of self-employed                          %
    DP3   Number of borrowers as % of poor population                        %
      BG PERFORMANCE INDICATORS
      FP FINANCIAL PERFORMANCE
    FP1     Weighted average return on assets (ROA)                          %
    FP2     Median return on assets (ROA)                                    %
     OU OUTREACH
    OU1     Portfolio size, US$                                              US$
    OU2     Average loan balance as a % of GNI per capita                    % of GNI per capita
    OU3     Y-O-Y growth in number of borrowers                              %
    OU4     Growth on GLP                                                    %
      DE DEPOSITS
    DE1     Number of deposit accounts                                       accounts
    DE2     Loan/deposit ratio                                               ratio
    DE3     Average deposit balance, US$                                     US$
    DE4     Growth on deposits                                               %
    DE5     Average deposit account balance / GNI per capita                 0
      EF EFFICIENCY
     EF1    Borrowers per staff member                                       ratio
     EF2    Cost per loan, US$                                               US$
     EF3    Cost per borrower, US$                                           US$
      RK RISK
    RK1     Portfolio at risk > 30 days                                      %
    RK2     Percent of write-offs                                            %
     MS REPORTING
    MS1     Number of reporting institutions                                 # institutions
Argentina     Armenia    Azerbaijan   Bangladesh       Bolivia       Bosnia       Brazil    Cambodia    Cameroon



      2.0          2.0         3.0           2.0          3.0           2.0         2.0           4.0         3.0
      1.0          2.0         3.0           2.0          2.0           2.0         2.0           3.0         2.0
      1.0          0.0         0.0           2.0          3.0           2.0         2.0           2.0         1.0
      1.0          3.0         2.0           1.0          3.0           2.0         2.0           2.0         1.0
      0.0          0.0         2.0           1.0          2.0           0.0         2.0           3.0         2.0

      2.0          3.0         3.0           2.0          2.0           3.0         2.0           3.0         2.0
      1.0          3.0         1.0           3.0          4.0           3.0         2.0           3.0         1.0
      2.0          2.0         0.0           0.0          3.0           2.0         2.0           0.0         0.0
      2.0          3.0         1.0           0.0          3.0           2.0         2.0           0.0         0.0
      0.0          1.0         1.0           0.0          2.0           0.0         2.0           1.0         1.0

     0.0           0.0         0.0           1.0          0.0           0.0         0.0           0.0         0.0
    55.0          65.0        75.0          55.0         65.0          60.0        25.0          75.0        70.0


      0.1          7.3         4.0          12.0          8.8           7.0         0.5           8.7         0.6
      0.8                                                43.5                       8.1
      0.5         27.6        25.5          23.9         14.6          50.1         2.3          28.8         1.5



   -2.8%         3.0%         4.4%         5.9%         2.0%         -1.3%        4.6%          2.9%        0.8%
  -15.2%         3.4%         4.0%         2.2%         1.5%         -2.2%        6.7%          2.9%        0.9%

 779,936    16,388,103   4,494,493    12,156,828   34,084,684    28,716,361   4,184,589    26,203,315   5,632,906
    5.4%         46.2%       23.9%         20.5%       105.2%         31.9%       14.1%         89.1%       76.5%
   17.9%         21.6%       11.5%          6.7%        12.5%        -27.4%        8.1%          9.7%       11.1%
   46.8%         43.9%       24.9%         18.3%        26.7%        -29.7%       38.7%         30.7%       50.5%

                                        151,752                                                3,286      16,913
      3.9          2.0         1.9           2.9          1.0           1.1         2.6         13.8          0.8
               1,403.8     4,481.0         27.4        924.9        1,538.4     1,461.4         89.2       504.5
   32.7%        18.3%       54.9%         16.2%         9.7%        -16.2%       36.9%         23.3%       14.9%
                44.0%       92.0%          5.0%        53.0%         33.0%       18.0%         14.5%       43.0%

    64.4          81.4        78.9         126.2         75.6         117.7       91.9           75.4       80.6
   312.4         159.1       191.2          15.3        262.2         211.8      279.3           98.8      110.4
   352.0         159.1       222.7          15.4        269.9         220.8      460.5          104.4      160.9

    5.2%         1.0%         1.5%         6.6%         2.3%         10.9%        5.0%          1.0%       11.0%
    2.0%         0.4%         0.0%         0.0%         0.7%          8.6%        1.4%          0.9%        0.5%

      13           10           23           29            23           14           24           16          10
                                                   Dominican    Dem. Rep. of
     Chile       China    Colombia    Costa Rica    Republic          Congo     Ecuador        Egypt   El Salvador



       3.0         2.0          2.0         2.0          2.0             2.0         2.0         1.0          2.0
       1.0         2.0          2.0         2.0          2.0             2.0         3.0         1.0          3.0
       2.0         1.0          3.0         2.0          3.0             1.0         2.0         2.0          3.0
       1.0         2.0          2.0         1.0          1.0             1.0         3.0         2.0          2.0
       1.0         3.0          2.0         2.0          2.0             2.0         2.0         1.0          3.0

       3.0         2.0          2.0         1.0          2.0             1.0         2.0         2.0          3.0
       2.0         0.0          2.0         2.0          2.0             1.0         2.0         1.0          2.0
       3.0         0.0          3.0         2.0          1.0             1.0         2.0         1.0          2.0
       2.0         1.0          3.0         2.0          3.0             0.0         4.0         2.0          3.0
       1.0         0.0          2.0         0.0          1.0             1.0         1.0         1.0          1.0

       0.0         0.0          0.0         0.0          0.0            1.0          0.0         2.0          0.0
      20.0        55.0         40.0        15.0         50.0           70.0         70.0        65.0         35.0


       1.4         0.0          3.3         0.6          3.7             0.1         4.9         0.8          2.7
      18.0                     19.4        11.1         15.2                        24.5                     26.4
       9.3         0.7          7.2         2.6          7.4             0.3        13.7         3.6          7.2



     0.1%        1.9%         2.5%         0.3%        2.3%           -0.3%        1.4%       11.8%         -0.7%
   -13.4%        2.1%         2.0%         2.8%        2.6%            0.2%        1.4%        8.4%          0.9%

12,868,453   4,501,361   15,071,048   1,606,349    7,280,007      1,955,427    7,031,647   7,279,267   5,790,029
      8.7%       49.0%        22.6%       23.0%         8.8%         130.0%        35.6%        8.1%       32.3%
      9.5%        8.8%        10.9%        7.1%        15.2%           5.5%        16.6%        9.8%        3.9%
     44.3%       19.8%        27.3%       19.5%        16.3%          31.7%        41.6%        9.2%       16.2%

    6,225                                              5,437         13,213       9,550
       3.2       13.2           1.5                       2.2            1.4         1.2         8.0          1.0
    379.8        21.2        500.8        25.7         354.9          187.5       367.2        32.5        658.9
    50.9%      -56.4%        47.0%       46.7%         -3.0%          27.9%       31.0%        8.8%        21.8%
     5.0%                    11.0%                      7.5%         109.5%        9.5%        1.0%        18.0%

     133.8        42.6        122.7        73.0         88.2          145.1       131.9       156.3          75.3
     213.7        65.6        181.4       204.5        158.5          112.2       188.8        27.3         224.6
     219.5        81.3        204.5       236.8        162.3          112.2       197.4        27.3         233.3

     5.6%        0.8%         4.5%         4.9%        4.0%            1.2%        2.9%        2.3%         9.4%
     3.0%        0.0%         2.1%         0.0%        1.3%            1.8%        0.4%        0.0%         1.5%

        4          10           30           15           10              5          44          13            14
  Georgia      Ghana    Guatemala        Haiti   Honduras        India   Indonesia   Jamaica      Kenya



      3.0         3.0         3.0          2.0         2.0         3.0         3.0       1.0         4.0
      3.0         2.0         1.0          1.0         2.0         2.0         1.0       1.0         3.0
      0.0         2.0         2.0          3.0         3.0         2.0         2.0       1.0         3.0
      3.0         1.0         1.0          0.0         2.0         2.0         1.0       1.0         2.0
      1.0         2.0         2.0          1.0         2.0         1.0         2.0       1.0         2.0

      3.0         2.0         3.0          1.0         2.0         2.0         3.0       3.0         3.0
      2.0         1.0         1.0          2.0         2.0         2.0         1.0       1.0         2.0
      2.0         2.0         0.0          1.0         1.0         0.0         1.0       2.0         2.0
      1.0         1.0         2.0          0.0         2.0         2.0         1.0       0.0         1.0
      0.0         3.0         1.0          0.0         1.0         2.0         1.0       1.0         3.0

      0.0         0.0         0.0          0.0         0.0         1.0         0.0       0.0         0.0
     70.0        45.0        45.0         75.0        50.0        25.0        35.0      40.0        65.0


      3.6         0.8         2.1          0.9         2.0         2.5         0.2      N/A          2.9
                             24.9                     12.4
     15.1         2.9         4.2          1.5         3.3         8.8         1.3      N/A          5.5



    3.3%        1.2%        2.9%        -3.7%        1.1%        2.0%        3.3%                  5.2%
    7.3%        2.3%        2.5%        -9.6%        2.2%        1.2%        4.0%                  1.5%

5,553,634   1,455,980   4,774,360   12,637,061   4,631,713   7,792,279   2,944,482             5,473,937
   111.1%       40.0%       17.7%        70.7%       33.8%       10.6%       25.3%                 39.2%
    49.4%       11.1%       15.5%       -24.0%       -1.7%       20.6%       11.9%                 -3.8%
    54.5%       14.5%       21.6%         2.1%       14.8%       19.2%       29.6%                 16.8%

              18,443                    6,198       2,034                  11,649                38,496
    18.4          0.8       24.4           0.6         3.4         6.2         1.7                   1.7
   341.2        71.6       317.3         66.7       108.2        27.2       117.8                  89.3
   52.8%       32.1%       -2.0%        80.5%       29.8%       20.5%       29.6%                 28.6%
   23.0%       12.0%       12.0%         9.0%        7.5%        2.0%        5.0%                 12.0%

    38.8       107.0        120.9         56.9       87.6       215.3         74.2                120.7
   479.2        77.6         98.6        210.8      200.1        15.9         86.4                125.2
   498.1        69.0         98.6        210.8      202.3        16.6         81.9                146.8

    2.8%        4.7%        6.0%        21.6%        8.0%        1.1%       12.5%                  8.1%
    1.4%        0.0%        1.7%        13.4%        2.1%        0.0%        0.5%                  0.6%

      12          38          20            6          20          97          21                    16
   Kyrgyz
 Republic     Lebanon    Madagascar      Mexico      Mongolia      Morocco    Mozambique       Nepal    Nicaragua



      3.0          2.0          3.0          3.0           3.0          2.0           2.0         2.0         2.0
      2.0          2.0          3.0          2.0           2.0          3.0           2.0         3.0         2.0
      4.0          2.0          3.0          2.0           1.0          0.0           3.0         1.0         2.0
      2.0          1.0          1.0          2.0           3.0          2.0           2.0         0.0         2.0
      1.0          0.0          3.0          2.0           3.0          0.0           2.0         1.0         1.0

      2.0          2.0          1.0          3.0           1.0          3.0           2.0         1.0         3.0
      1.0          2.0          0.0          3.0           2.0          0.0           2.0         2.0         3.0
      1.0          2.0          0.0          2.0           1.0          0.0           1.0         0.0         1.0
      2.0          0.0          1.0          2.0           0.0          3.0           1.0         0.0         2.0
      1.0          1.0          0.0          1.0           1.0          1.0           1.0         1.0         1.0

      1.0          0.0          0.0          0.0           0.0          0.0           0.0         1.0         2.0
     55.0         70.0         85.0         40.0          45.0         60.0          50.0        65.0        65.0


      6.9          1.0          0.4          5.0          14.2          2.5           0.2         2.6         5.6
                                            30.1                                                             37.5
     16.0          5.1          0.5         10.5          40.2         28.2           0.3         8.2        11.7



    4.0%         4.0%          2.2%        8.5%          2.1%         2.6%         -2.3%        2.2%       -5.4%
    4.3%         3.4%          1.3%        1.6%          4.7%         0.7%         -4.3%        2.8%       -4.6%

4,959,053   14,951,809    4,657,432    5,278,782   135,264,838   14,550,830     2,842,607   3,513,179   6,008,156
   110.2%        12.2%       162.8%         3.8%        158.4%        14.0%         73.8%       29.7%       83.7%
    11.6%         3.6%        -7.1%        16.4%          3.6%       -11.0%         16.2%       15.1%      -13.3%
    23.4%         3.7%         5.2%        33.0%         73.3%        -0.4%         11.5%       53.1%      -10.5%

                             30,074                   194,286                     16,584      34,561
    31.6                         1.1         5.4           1.1                        2.5         2.5         2.7
   253.0                      122.2        75.8         647.0                       55.1        17.4       264.3
  -31.1%                      11.9%       26.0%         82.3%                      32.1%       48.9%       19.9%
   27.0%                      28.0%        1.0%         30.0%                      11.0%        3.0%       23.5%

    77.4         122.4         34.4       108.6           64.6        124.2         70.9       190.5        88.9
   122.4         184.2        146.9       169.4          157.3         89.3        167.1        18.2       141.6
   122.4         175.3        167.8       180.1          190.8         89.3        259.3        18.4       138.0

    3.1%         3.5%          7.5%        4.3%          2.9%         6.8%          4.1%        0.6%       16.4%
    0.2%         0.9%          1.6%        2.6%          0.1%         5.5%          0.2%        0.0%        4.0%

      14            3             8          64             4           10             8          28          25
  Nigeria    Pakistan    Panama      Paraguay           Peru    Philippines    Rwanda        Senegal    Sri Lanka



      3.0         3.0         3.0          3.0           3.0           4.0          3.0          2.0         1.0
      2.0         3.0         2.0          2.0           3.0           3.0          3.0          2.0         2.0
      2.0         2.0         2.0          3.0           2.0           2.0          2.0          1.0         2.0
      1.0         4.0         2.0          2.0           4.0           3.0          2.0          2.0         0.0
      2.0         3.0         2.0          2.0           2.0           3.0          2.0          2.0         1.0

      1.0         3.0         3.0          2.0           3.0           2.0          1.0          1.0         1.0
      2.0         3.0         2.0          2.0           3.0           2.0          1.0          1.0         1.0
      2.0         2.0         2.0          3.0           2.0           2.0          2.0          1.0         1.0
      1.0         1.0         3.0          2.0           3.0           1.0          2.0          0.0         1.0
      2.0         2.0         1.0          1.0           3.0           2.0          2.0          1.0         2.0

      0.0         0.0         0.0          0.0           0.0           0.0          0.0          0.0         2.0
     65.0        65.0        40.0         55.0          50.0          55.0         55.0         60.0        40.0


      0.3         1.1         0.4          6.9          11.2           3.1          0.5          1.3         6.5
                              4.9          9.6          33.9
      0.9         4.8         1.2         19.6          32.3          11.7          0.9          4.0        43.0



    7.3%       -2.1%        3.5%         2.6%          2.3%          2.6%         1.7%         0.5%        1.4%
    8.1%       -2.7%        4.0%         2.8%          2.1%          2.0%         1.1%         0.8%        1.1%

8,412,253   3,326,817   3,889,892   92,852,458    24,982,206    5,509,136     3,080,504   13,178,211   3,308,904
    14.4%       11.8%       31.9%        46.7%         29.1%        15.5%        119.0%        86.0%        7.6%
    11.8%        7.8%        6.6%        17.0%          5.1%         8.2%         46.4%        27.4%        6.2%
    60.2%        3.4%       11.5%        35.3%         24.1%        20.9%         27.2%        18.0%        9.4%

  67,028                   2,134        21,210         4,442       27,598       21,045       46,401      13,896
      1.7         2.1         4.8           1.0           1.1          1.3          1.5          1.6         1.2
    56.9        70.6       241.2       4,718.9       1,391.4         98.9         44.5        125.0        56.7
   50.9%       19.0%       10.4%         38.2%        35.0%         20.8%        27.9%        18.9%       19.5%
    5.0%        7.0%        3.0%       172.0%         25.0%          5.0%         8.0%        12.0%        2.5%

   177.5         98.3       76.6         145.6          99.4         111.3        52.0         138.4       149.4
    31.8         42.2      225.3         147.9         204.6          69.7       203.2         125.9        30.5
    31.8         39.9      225.3         160.5         235.5          70.1       205.2         148.2        32.0

    1.4%        3.9%        5.0%         4.0%          6.1%          6.0%         4.6%         8.4%        5.0%
    0.1%        1.8%        0.5%         2.7%          1.3%          0.5%         4.0%         1.5%        0.0%

       6          21           4             6            59            67           7            9           20
                                      Trinidad and
Tajikistan     Tanzania    Thailand        Tobago      Turkey       Uganda     Uruguay    Venezuela     Vietnam



      3.0           3.0         1.0           1.0          2.0          4.0         2.0          1.0         1.0
      3.0           1.0         1.0           0.0          1.0          3.0         1.0          1.0         1.0
      1.0           4.0         1.0           1.0          1.0          2.0         1.0          0.0         2.0
      2.0           2.0         0.0           0.0          1.0          3.0         2.0          1.0         1.0
      2.0           2.0         2.0           1.0          0.0          3.0         2.0          1.0         1.0

      3.0           3.0         1.0           2.0          3.0          2.0         2.0          3.0         1.0
      2.0           1.0         1.0           1.0          1.0          2.0         2.0          2.0         1.0
      0.0           1.0         0.0           0.0          1.0          1.0         3.0          1.0         0.0
      0.0           0.0         1.0           3.0          1.0          1.0         2.0          0.0         0.0
      1.0           2.0         1.0           0.0          0.0          1.0         1.0          1.0         0.0

      0.0           0.0         1.0           0.0          0.0          0.0         0.0          1.0         0.0
     75.0          45.0        65.0          40.0         50.0         60.0        20.0         60.0        55.0


      1.7           0.5         0.0           N/A          0.1          0.8        N/A           0.1         9.6
                                                                                    2.6          0.5
      3.7           1.6         0.2           N/A          0.3          3.4        N/A           0.5        66.1



    1.4%         -1.5%                                                3.3%      -16.7%       -10.5%        3.9%
    3.9%          2.2%        1.7%                      -2.9%         3.4%      -16.7%       -10.5%        6.2%

 722,427     14,893,446   1,491,914                  6,391,117   10,974,203   4,289,826   74,496,626   1,167,890
   88.4%          40.3%                                   4.4%        83.1%       22.2%        21.8%       13.4%
    8.6%          25.1%                                  22.6%        10.7%       83.1%        11.7%        8.8%
   39.6%          12.7%                                  23.5%         7.6%       66.4%       -22.8%       14.0%

                17,167                                 21,153       74,694                  142,897      10,986
     2.8            2.8                                    7.5          3.2                      1.9         2.9
 6,951.3          35.9                                   37.8         59.9                    271.7        35.4
 193.0%          12.2%                                  81.2%        16.1%                    16.5%       17.8%
 987.0%          14.0%                                               13.0%                     4.0%        3.0%

    35.5          155.3      683.5                      160.0          94.1        45.4         82.5      155.0
   151.0          116.4       19.8                       90.5         165.3       783.2        493.0       16.5
   154.0          116.4       19.8                       92.5         177.8     1,201.1        493.0       17.4

    2.9%          1.9%        0.1%                       6.7%         3.9%        9.2%         1.3%        0.0%
    0.0%          0.6%        0.0%                       0.8%         1.7%        0.0%         2.3%        0.0%

       29            8           1                          2           12           1            1          16
 Yemen



    2.0
    3.0
    2.0
    1.0
    1.0

    2.0
    0.0
    0.0
    1.0
    1.0

    2.0
   90.0


    0.1

    0.3



 10.2%
  3.1%

583,685
  11.0%
   7.7%
  53.8%

 5,173
    5.3
  17.8
 25.3%
  2.0%

  108.0
   40.2
   39.0

  1.6%
  0.0%

     7
INDICATOR NOTES



                                                                                 Argentina           Armenia
          OVERALL SCORE
      1    REGULATORY FRAMEWORK AND PRACTICES
    1.1     Regulation and supervision of microcredit portfolios                            The overall framework in Armenia rema
                                                                            The Superintendency of Financial Institutions of the Ba
    1.2     Formation of regulated/supervised microcredit institutions                      Becoming a regulated microfinance ins
                                                                            There are no specialised juridical vehicles for microfina
    1.3     Formation/operation of non-regulated microcredit institutions                   Armenian laws and regulations do not
                                                                            Administratively, forming an NGO can take up to one ya
    1.4     Regulatory and supervisory capacity for microfinance                            Market informants continue to regard t
                                                                            Specialised expertise and methodologies for microfinan
    1.5     Regulatory framework for deposit-taking                                         Deposit microfinance are remains rest
                                                                            Institutions operating in taking in Armenianot allowed t
      2    SUPPORTING INSTITUTIONAL FRAMEWORK
    2.1     Accounting transparency                                                            According to the standards followed by
                                                                            There is a large gap between anecdotal information pro
    2.2     Client Protection: Transparency in pricing                                         Introduction of new laws on a Financial
                                                                            There is no requirement to publish effective rates, and p
    2.3     Client Protection: Dispute resolution                                              The prevailing view is that the legal fram
                                                                            There is no specific regulatory framework in place that
    2.4     Credit bureaus                                                                      26 private bureaus, bureaus providing
                                                                            The country hasThere are two credit plus a public regist
    2.5     Policy and practice for financial transactions through agents                       behind in laws continue to be silent on
                                                                            Argentina is still Armenian the use of technology applied
      3    ADJUSTMENT FACTOR: STABILITY
    3.1     Political shock to microfinance                                                     to financing remains a weakness, there
                                                                            Although accessThere have been no domestic political t
    3.2     Political stability                                                                 is obtained from obtained from the E
                                                                            Political stabilityPolitical stability isthe Economist Intellig
    Azerbaijan       Bangladesh              Bolivia          Bosnia              Brazil      Cambodia          Cameroon                Chile            China



Three types of institutionsfour allowed toon Banks and are actively engagedCentral do in Bangladesh: Grameenactivitymainto usuryby microfinance sectorand regulationsactiviti
                There are are typesLaw conduct involved in microfinancein microlending in Bosnia & Herzegovina remains broadlyunder specific specialized de BancosforInst
                                 The of institutions regulatory and supervisory frameworkregulation, (1995) and(either governed laws, the Superintendencia microfinanceanc
                                                  The Financial The Banco activities Brasil BankCentral Bank) isPursuantmicrofinance NGOs (of which law conducted byMFIs);
                                                                 Entities (1993), the Central in Azerbaijan: banks the moreregulator, the microfinance 570 (Règlement n°1/03
                                                                                  Licensing, (theMicrofinance Bank; is through The supportiveas laws is are licensed theba
                                                                                                    Law and supervision of than 1,000 serviceor of microcredit lending e bro
                                                                                                                    their subsequent amendments provide in China, defined ba
                                                                                                                                   downscaling providers the main juridical N
Regulations seem conducive to the formation ofSetting up Greenfield MFIsbanksCambodia has institutionsnot seemenabled thegroupsregulationsbe legal statusas a“non-deposi
                Banks in Bangladesh enter the microfinance sectortheand 1990sthat provideNGOsand doin(MFIs) as majority to formation MFIs are established as of lend direc
                                 Fondos Financieros Privados (FFPs, by lending to microfinance aThe overwhelming anfor the specific NBCIsencourage non-governmentalpre-a
                                                   new greenfieldIn private financial funds) were standardized process arerelatively easyof ofcan FBiHthe creation theha a orga
                                                                  MFIs late and forming new MC, new traditionally overly no(over 90%) of greenfield and types of microcredit
                                                                                    and early 2000s, has regulations been restrictive. have formal registered by legal entitie
                                                                                                   created 1995There attractiveMCCs ofin both for MFIs. The can greenfield
                                                                                                                    or directly formation to two distinct RS with savings and
                                                                                                                                    vehicle poor individuals. They NBC bureauc
“Nonregulated institutions” essentially various Supreme DecreesWhereasof 1990, 26140Code andanddesignedcontinues to beBank inversus supervision based onpersons—whet
                NGOs were in Azerbaijan cannot provide the passage in bothMicrocredit Regulatory Act in conditionsthe governingis considered prudentNGOs late segment con
                                 Under unregulated until microcredit.of the regional entities of Inspecialised legislation subsequent effect formation ofjuridical size.non-regula
                                                  The legal framework Because the Civil framework countryofbyand Central an NGOcreation of the microfinance 1990s define
                                                                  (22409 the regulatory of 1991 the 26973the2003),for regulationNGOsinstitutions Microcredit Regulatorycho
                                                                                  The legal framework sets 2006microfinance law, non-regulated or COBAC must participant
                                                                                                     drafting      Establishing conducivenotsince 2007, in the strategically wit
                                                                                                                   the non-profit The is to prohibitive. credit-only,register Au
                                                                                                                                   private implemented by market NGOs, co
The central bank, as MicrocreditSince the late 1980s the supervisory focused stretched the Bank of staffthe microfinance law, and quality) financialpublishinghasPBCFinanciero—
                The the main oversight institution for(MRA) initially body, is on the Financial System Supervisory theSuperintendenciaintoto understand ofitthe MCOs in FbiH (S
                                  Regulatory Authority has financial sector,the Central Bank regulatory capacity regulatory capacity foris de Bancos esector, SistemafourtoCBRCre
                                                  There the been Although now The NBC’s has strong general at(in numbers COBACregulatorythat Institucionesroom differen
                                                                 some improvement in in terms Under capacity Thestandards, Banking Agency capacity the MF market. of MF
                                                                                  issuing licences,Supervision Department is organised the Supervisión del information Thus,i
                                                                                                   setting accounting Regional and collecting and supervises Financieras
                                                                                                                    Authority (Autoridad de separate divisions with and impro
                                                                                                                                   The the exclusive regional supervisor abou
Among institutions providing microcredit in Azerbaijan, only banksfrom credit unions their have obtainedFBiHcategoriesandno specific regulationsunder public licenses andmay
                Present regulations bar MFIs from taking deposits MCOs,as banks, Fondosinstitutions in bankand RS areexclusively allowed to Category these Category 2profit
                                 Regulated microfinance institutionsand anybodyMost that members (except institutions of whichOfCameroon, and services, althoughregulated
                                                  Under the Law on such all microfinance Financieros Privados Grameen, MFIsdeposits. SCMs, however, and savingsthosebusi
                                                                 Most regulated microfinance institutions arefor (FFPs, private financialoperating microfinance institutions,for
                                                                                   but MFIs and unregulated permitted to take in the regulated regarding deposit-taking who
                                                                                                   Of the three licenses are have been funds) mobilise 1 which are allowedon
                                                                                                                   There non-deposit-takingcredit cooperatives are Their foll
                                                                                                                                    is provide financial organizations. in     to

The June 2004 Law on Accounting and the Banking LawIFRS to International Accounting Standards (IAS) in framework for those technical areasof Financebroader
divergeAccord
                 Bangladesh does not permit theConversion by domestic auditing standards areitlimited to scope As as Bangladeshproviders under its the has Regulatedtofroms
                                   Economy-wide, Bolivia'sof 1996 The Central Bank has reported slowthatbegantowardson accounting and auditing in and financialzerbaijan’s ba
                                                    use of accounting and listed companies, but The progress IFRS of DecemberThe 2009, allamongsttheyfirst entitiesaccounti
                                                                    assign standard-setting responsibilities allthe MinistrycomplianceFinancial Reportingnorms. set A institutions
                                                                                     The NBC mandates legal microfinance in 2002 31, Ministry NBA, respectively. forth institut
                                                                                                      has adopted in and, ofservice with MCOs banks supervision (BFRS).prescri
                                                                                                                      earnest Finance and to the where Standards use its embr
                                                                                                                                         with international the exist, financial secto
There is no legalTransparency inAccordingnotthe Financial routinelyfinancial institutions have to orofde Supervisión themes in 2011,10%, NGOtransparency with regard to allTh
                  obligation for providers of microcredit to Systemhas become oneare the (Autoridadrates on atheThe Ley their promotional materialsputting a interestexistingst
                                   pricing is to a major issue in Bangladesh. There interest rates publicise information Calculation of(règlementwithrequirement, any rates. 200
                                                   Client protection Supervisory Authority issuance fees 65headline delgivenProteccion al regulators01/Cemac/Umac/Cobac) on
                                                                    All disclose their of three lending its publicly. Thus,in de theFinanciero—ASFI, on on their lot ofLoans in re
                                                                                     Since its most prominent of flatmicrofinance Law with Consumidor banking 12.5%, and fees
                                                                                                     Article prakas on basis—Grameen Interest Rate the (Consumer Protection La
                                                                                                                       the Sistema Standards of no. PKSF loans regulator), BRA
                                                                                                                                       lack of regulatory Microfinance pressure tr
The civil code prescribes how non-payment of aThe regulator has been pressuring MCOsno commercialSupervisiónadelareevent Financiero—ASFI,establish later in service regul
                 The regulatory and business environment does not provide forAuthority (Autoridad any disputesThereariseno group thatbasic (minimum) mechanismsresolving
                                   According to themicroloanSystem Supervisory any dispute-resolution mechanisms newSistema of disagreements themechanisms for or Thecl
                                                    Financial by a borrower wouldTheredispute The central bank has inoutside the judiciary, no settlement bemicrofinance lende
                                                                    There are no specific is to resolve de or small-claims court specific dispute formal is no official 2011 a for c
                                                                                      be handled. resolution mechanismsworking in Cambodia,consideredbanking regulator), Boliv
                                                                                                     In January 2011, that the with borrowers through bilateral burdensome form
                                                                                                                       a      law guarantees plans to between negotiation. and
                                                                                                                                       There are and there to banking mechanism
There is a publicNo credit bureau covers microfinance borrowers. dramatic improvementbureauthanmicrofinanceofpublicCentral Bankbanks,centralinsetonlyopenbutallcreditto M
                  credit registry, Azerbaijan’s Centralized Credit Registry (CCR), which has more forforBanque deslending,following for allowand staffcreditis apartly the Chinainfo
                                   Since the debt crisis ofhas been There is hasspecificregulations The threeeffectiveness peer the works forregulated MFIs information systemb
                                                   There 1998-2001, ASFI no issuedcredit in MFIs) relymicrofinance.credit registry, operated via thewas the arrival credit yet to
                                                                    a Microfinance institutions credit bureaugroup Ahas been in monitoringa years with up access ofit is registry
                                                                                     A credit bureau openingyears Etats de bureausthe set up butownfollow-up to toopened Cre
                                                                                                     for on private The L’Afriqueto credit (BEAC)SBIF, bureau,ensure high lo
                                                                                                                                historyThere is crisis Cambodia, to a institutio
                                                                                                                                         Centrale its it credit bank        state-ow
The technological sophisticationMobile financial ExtendingAzerbaijan ishas a vast The Ministry of Economynobankingnomicroloansor Internetbranchlessbeing doneyet.thisbut itof
                 MFIs are not at present banking is legal in microcredit and/or repaying microloans through mobile regulationpoints and or is notphone,disbursement, BEACno
                                    of the allowed sector for regulated institutions network of wellMC and/or repaying regulatory telecommunicationtransactions thoughveryas
                                                   to offer money-transfer services low. sometimesThere is for formal phone, no specific regulations in place regarding the are ea
                                                                    Brazil relatively and Extending regulatedThere There regulates Mobile for microcreditbanking, Internet is se
                                                                                      through mobile offered and Finance are (over 100,000 “correspondentes bancarios”), use is
                                                                                                      phones. cashisin/cash out forframework money activities butin A marke
                                                                                                                         agents POS, through mobile yet bankingor still at Bangla
                                                                                                                                        electronic for mobile POS, is there which

Azerbaijan has been free of been significant tensions betweenupThere have microfinance other significant changeslargest microfinance institution,China would affect the politict
                   There have any Political tensions have have been since mid-2010Thereor operationsBangladesh’sneed or of MF significant changessince havegovernment operat
                                      political developmentspicked theno political tensions haveexpectationsfinancial eventshave been nothe operationtheperthe no political series c
                                                         There negatively affecting beenas Grameenshocks or past year,Thereto tightenpolitical tensionshaveorhas that of or political o
                                                                              government and unmet been no politicalthe stability other providers. There or other significant a shocks
                                                                                                no political Bank,the tensions there been no that would affect of operation have financial
                                                                                                                  In       and tensions would affect political shocks been been stabilityremov
                                                                                                                                      that in Brazil In the past year, that financial free affected
                                                                                                                                                      government spending se sparked of of mi
Political stabilityPolitical stabilityPolitical stabilityPolitical stabilityPolitical Briefing.Political Briefing.Politicalan assessment of socialincludesof socialincludesof opposition stance, e
                    is obtained from the Economist isthe Economist isthe Economist isthe indicator includes Briefing.Politicalan assessment orderly transfers, socialincludesof oppo
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                                                            obtained Unit'sobtained Unit'sobtained Unit'sobtained Unit'sobtained Unit'sobtained Unit'sobtained Unit's Risk orderl
                                                                                Risk stability This Economist isthe indicator includes Briefing.unrest, an assessment orderly transfers, soci
                                                                                                   Risk stability This Economist isthe indicator Political Briefing.unrest, an assessment an ass
                                                                                                                      Risk stability This Economist isthe indicator isthe indicator unrest, Briefin
                                                                                                                                        Risk stability This Economist This Economist This indicato
                                                                                                                                                         Risk stability Risk Briefing. the Econom
                                        Dominican      Dem. Rep. of
      Colombia         Costa Rica        Republic            Congo             Ecuador             Egypt       El Salvador           Georgia            Ghana



Regulated institutions involved in microfinance that banking industrythe sector underGeneral deThe ofavailable in Egypt since lesser1965 and Ghanadel Sistemacentral microcret
                 The General Superintendency ofThe are supervised byis still in itsMicrocredit has been include banksBanking afromis of separate superintendencies institutions p
                                 The Bank SuperintendencyEntities (Superintendencia of September 2008 mandatesand,formationcivilcharge its supervising and regulating(SSF
                                                     Financial regulatesnew constitution the authority main regulatorythe hasLaw Theextent,in of subsequent 003-2002bank)In (
                                                                   The the Financial Superintendency country’sGeorgia to relatively 1980s, 2003. Law withamendments. the
                                                                                      infancy following the the General body is the of in advanced and microcredit-friendly2002
                                                                                                      Entidades Financieras—SUGEF)Superintendencia (BoG, thethe first the legal
                                                                                                                        emergence the late warof beginning no. Financiero publ
                                                                                                                                             Bank non-banking financial for of is
There is no special designation for microfinance A numberNew or existing entities—suchspecialised there have beenforlegal categoryand aaspecialised years,basedthe major byit
                 There are no specific legalthe 2005 for microcreditsignificant numberminimum capital requirement incorporatedan the regulatory process formillionBoG chang
                                 Based on vehicles Non-Governmental Organisationmajority of institutionsnot formalinsetting(NGOs)—can regulated financialalltoinstitution, m
                                                    vehicles. of Greenfield microfinanceof as Law, As microfinance institutions (MFIs) continueseveral microcredit on and desig
                                                                   A institutions. The (NGO) non-governmental allowed to transform Egyptian bank is EGP500 entity (approxim
                                                                                     The institutions (MFIs) is engaging administrative intopastare regulated mostlybecome form
                                                                                                      NGOs are no organisations upInstitutions to exist among setting up regul
                                                                                                                       The microfinancefor unregulated non-governmental organ
                                                                                                                                          in are enter as or upgrade       funded fina
NGOs face no significant regulatory barriers in formingare not one of the fivein microcredit, in regulatory and legal terms and usury rates.clientsof Civilmicrofinanceregulatorybrp
                 The relevant laws is not difficultNGOs may alternatively be constitutednon-regulated NGOsare also subject Foundationscommunitythe NGOlegal other84agreed
                                 It under which NGOs and NGOPreviously, numerous are the Law of they non-regulated co-operatives respondentsnotsolidaritytoregulatedof
                                                    to open an becomingmicrocredit operation although Associations, permitted five of six orsector-wideloans and survey twomic
                                                                     or a active listed legal forms of MFI organisation Lawcurrentto The new NGOsare andSocieties;(No.but of 200
                                                                                     The Ministry of Social Solidarity Under regulates NGO-MFIs under also the EIU to providebe
                                                                                                     NGOs and (including foundations and face no significant law or law, to
                                                                                                                       (MSS) of to legislation They with to subject all microcre
                                                                                                                                         provide Law are        allowed banks) opera
In general, the Financial banking-sector regulation by the General Superintendency is knownstarts, ofHowever, supervisory capacityofits tohas orbut and enforcementanother ad
                 General Superintendency (Superintendenciacall There isemerged in of FinancialBCC. SFF (Superintendencia General deGeorgia, which forchargefor sectorstanda
                                 A patchwork regulatory framework annual on-site visitsandthe EntitiesSuperintendency regulatory/supervisory non-existent. Thesupervisingfo
                                                   Regulations Financiera—Superfin) fits by forcapacity hasstrict specific with Bankin BoGof microfinancefinancial conducting it
                                                                    for has substantial, specialised The bank and FI and professional is limited limitedthe banks,of modest num
                                                                                     Although capacity as avery regulation since theTheintentions, unit capacity and ofhas imp
                                                                                                      being for oneThe National good Entidades Financieras—SUGEF)capacity
                                                                                                                         oversight institutions regulation limited specialised and a
                                                                                                                                         activity supervise is is regulated (with spe
The only entities thatregulated financialtake deposits from the public aredeposits, by the bankingandregulated financialto corporationsexternalBank deposits and offer deposits. s
                 Only are authorised to institutions are allowedUnder of defined which forcescomprehensive services institutions sourcesfinancialoperates can take financialSa
                                 Regulated microfinance institutionstake authorized framework, most3 have been Althoughtheir clientele, totimedeposits from customers,instituB
                                                   Under Instruction 001 the existing to provide 2banksnon-regulatedbanks are accept voluntaryfunding andand somepressures du
                                                                    to are 2005, only Category All as banks,only NGOs volatileon Central funding (mainly strict regulatory r
                                                                                     Under the 2003 Banking Law, financial offerrelyThe and of inmicrocredit a second-tier). Reg
                                                                                                      law MFIs are permitted to permittedprovide deposits,products These althou
                                                                                                                        able to      savings both savings liquidityand credit.
                                                                                                                                           that   accept co-operatives. co-operativ

The superintendency requires regulated institutions DRC has in de factoaudited raised concernsaccountingqualityare financialandcomplyTheyto market have followsubmit detaile
                Accounting norms among regulated financial a prior years has financialthe for aboutand externalof requiredenforced. Inpressure onrequired Institutoin Colom
                                 The closure of several banks institutions approximate IAS, NGOIFRS There are noauditing is reporting. witharethese disclosure and IFRS are su
                                                   The to publish annual two-tiered system and Banks and regulated MFIs fundedfinancialFebruary donors been the transparen
                                                                   Annual externalUnder and ratings are required for regulated institutions, statement audit standardsenforced
                                                                                     audits statements. NGO-MFIs Regulatory to co-operatives that 2010, the to well destand
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    Guatemala                Haiti       Honduras               India        Indonesia           Jamaica             Kenya          Republic         Lebanon



The Law on Banks andnew issues and challenges have arisenmain regulatorythe regulates and theCommission for set market Insurance Companies)Bancos—SB) isprovidedexch
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                                                                    Banks and otherThe central bank (Bankinstitutions that engage in microfinance de they Kenya (CBK) regulato
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   Madagascar             Mexico         Mongolia           Morocco      Mozambique                Nepal        Nicaragua            Nigeria          Pakistan



The Stratégie Nationale de MicroFinance (SNMF,ythe National(CNBV,legislationCommission Rastra 2004 arestill the central of microfinance is onefor the promotion,in theupCred
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                                                     purposes, Microfinance Strategy), devisedno. Bank andaadopted Central mid-Pakistan in Mozambique microfinance, world
                                                                   Mongolian government (law not18-97), engage in ofas of Bank a regulatorthat provide begins with authorit
                                                                                   The Law the in directly supervision principal frameworkexclusive microlending asregula
                                                                                                   There (NRB, in The 2007, market. Indirect theis banks is set aside well,
                                                                                                                  effect financial institutions (CBN) financial system
                                                                                                                                       of Nigeria of     responsible growth to 3
                                                                                                                                                                               and
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                                                                  for-profit credit and institutionscan do so the the two systemthe microfinancethe formalization of non-regu
                                                                                       main formal and law ifCentral Microfinance Policy Framework, as amended in 2011, stil
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                                                                                                                   promote minimum Federation of Microcredit the lendin
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                                  The non-regulated microfinanceMFIs classified under currently After regulatedunlicensed financial providersoperationsmicrofinancefor opera
                                                   of non-regulated MFIs and Mongolia isin Moroccoandin according often 2011 microfinance thatand 2005, ascope many are
                                                                   industry microfinance primarily awarding of Until theemergence semi-formal include non-governmental
                                                                                   Microfinance services D approval to
                                                                                                   C 1,600 of these institutions on by CONDUSEF’s register although service
                                                                                                                  institutions (seeNon-bank, unregulatedis “microfinance institu
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                                                                                                                             2004 decree formalmust operate informal microfin
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                                                  The well-developed framework and capacity of financial of opinionfinancial whileeffectiveness, including licensed NGOs,to reg
                                                                  The regulations The NRB health As bankssupervision inall financial institutions, significantly enhanced hands
                                                                                   in there the regulatory oversight of similarcrisis ofmicrofinancepolitical, andofrequired specia
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                                                                    the in 2005 that are MFI, been (standards guidelines an it has2004 banks Mozambique and andtherecom
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                                                                                                     Standards financial statements at medium-to-large institutions), under intern
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                                  Some MFIs have 2009, Maroc Telecom (MT), Morocco’shighto Servicesoptimism looking forward thanks Bankin Mozambique,adoptedin early
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       Panama           Paraguay               Peru      Philippines          Rwanda             Senegal         Sri Lanka        Tajikistan         Tanzania



Banks and finance companies are the main regulated institutions active NationalMicrofinanceMicrofinanceinChapter IIIspecificallyin the GeneralNo.threeMicrofinanceand thefro
                The main regulatoryregulatoryisSince the adoption of a in has remained stable that holdhas madeto major shift supervision of National thedifferoften cited fram
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                                                                                                                     Regulation and a microfinance bank of (1995) to policy as
                                                                                                                                       Central Law Law only is             microfin
While there is no legal in some other countries,framework providers laws or provisions the single-purpose,3, or 4Regulationsmustinvolvedbanks. The policyandasimilar thatope
                Unlike framework for microfinance in are no of risk categories, provisioning, aregulated institutions specific arebeThere are consistsformsobtainadvantagessince
                                The regulatory Regulated establishes three distinct types ofandSrimicrofinance law,thrift or co-operative in legal of RDBsformation ofspeciali
                                                 there terms special of microfinance services arethe like, there is institutiontype of institutions BNR for However, licencenewfoc
                                                                  Groups seeking Under for current Lanka’sregulated microfinanceapply to the (MFIs).in the regulatedMFI Regu
                                                                                   to establish category-2, as rural,which can fourbankingprovisions theThe banks”MFIs, the
                                                                                                     classified regulatedthere are broadly conducive and“special such specialis
                                                                                                                      a microfinance sector licence to for environment of M
                                                                                                                                         possible microcredit. 2004/05 to up
NGOs may operate in microfinance and they and tax-exempt, butmicrofinancelaw allows for non-governmental organisations (NGOs) and(closed) existencewithno thethemainSe
                The legal framework permits areThe to engage inThe new to of non-licensed, informal microfinanceorganisations Levelis notstruggle to raiseoutaby supervisoryia
                                Credit NGOs NGOs microfinance they cannot take deposits. Not many microfinancelegal framework they conducive toremain thein unregulate
                                                   co-operatives continue MFI with operational flexibility as the latterNGOs institutions, particularly as therecapital. Nationalfun
                                                                    activities operate as non-regulated MFIs; non-regulated(category-1), suchmust institutionsformationunregul
                                                                                   The previous MFI regulatory scope groupsmembers-only co-operativesset of that The and h
                                                                                                   Voluntary service excluded, yetin Sri Lanka as tontines, theoperate regulatio
                                                                                                                     The are exist, recognized, the register is non-regulated
                                                                                                                                      and 1 institutions, as to     largely past
International organisations suchThethe IMF andathe OECD have generally qualitySincederegulation ofSamurdhi Authoritysupervision. has improved insupport toregulations and t
                Poor banking regulation enjoys The central bank has a Micro,examination capacity ofthe sector in improved supervision of the the modestly, Department of sta
                                 as SBS has brought several banking crises since of its2008, policymaking forFinance National Bank owing to a lack ofthe sector.of acentral the r
                                                   good reputation for the praised the general financial regulations1991. of Sri low, oflicensing are SBSs, handsthe bank, concem
                                                                  Before 2010, Small and Medium Enterprise their extremely Lanka Central Bank’s Bank the even during bank
                                                                                     Panamanian regulators authority,and Regulation In microfinance, dedicated For specialized
                                                                                                   The the BNR was supervision The regulates financial Supervision Division
                                                                                                                     The Specialist Group that provides specific andexample,
                                                                                                                                     and Tajikistan (NBT), the central trained Co
Banks can capture varied regulateddeposits (fixed, savings,regulated microfinance and regulations are consideredOf MFIsall thefocusingby have alwaysunder originto intermediatm
                Formally forms of institutions can banks, checking, of differentRwanda clearly states that thrift thefor itsare classifiedNGOs operating been onbyare categorized
                                The regulatory framework establishes deposits without limitations,(rural, services the three forms institutions customerwhich2004income. mi
                                                 As capture all types MFI law in degrees of 2008 Under the withmeeting regulated of MFIs allowedonin than their legal onas w
                                                                  The trust funds), service providers subject tolaw, exception of Act, Central institutions,microfinancepreventio
                                                                                   Under the deposit-taking Financial co-operativeCategory-4 Bank’s Bank Supervision form app
                                                                                                   microfinance and Companies The in activity, rather insightlegallaw status
                                                                                                                      reasonable, requirements of depending the and Division
                                                                                                                                      banks) particular the able of may Gu

Accounting standards for regulatedobligatory Accounting Standards companies adopted Central begunprovidesfollow IAS.ofandinstitutions follow internationalentitiesThe requir
                IFRS standards are institutions inbanks and dollarised(includingand the by Peruand thecentre documents wellimposes standards calledother accountingcount
                                  International for Panama's finance (IAS) weregovernment has Bank sector-specific setthatof suppliedyear,Bank’sandwith international stand
                                                   All companies, banks economy MFIsoffshore financial to move Sribanksensuring The microfinance)for accounting, which stand
                                                                   The Rwandan the rural,subjecteconomy-widetowardlate 1990s, and IFRScompliance accountants. firms,purp
                                                                                   and are thrift On a whole, in Lanka is accounting standards, Bank“Référentiel comptabl
                                                                                                      to co-operativeA majority providethis with accounting for all listed registerem
                                                                                                                        the Beginning Central qualified standards forDivision
                                                                                                                                      company are required Supervision tax but
Banks are required to state theirRegulated institutions areAct 3765effective), and Article interest-ratesector feesregulationsstipulateseffective interestpublicitynotwell astheyexpen
                The Central Bankinterest rates (both nominal and (The Truth in Lendingstate therates and and insist formsrequiring thatthat MFIs subjectSuperintendency enfor
                                    and consumerRepublic required tomonitor abuses of60 of whether creditorsare sufficient to of a Central institutions as aas operatingthe po
                                                   protection agenciesBNR requires that interest There theyno inTheproviders ofon ofperiodicBank’srates to WAEMUtoDivision v
                                                                   The disclose effective the formal structures fixedon publication financial are recover is whether policies Ba
                                                                                    clearly Act) requires Microfinance law of published as wellbasis. The their uniformly of an
                                                                                                     2008 are are and or variableensure media rates,Bank Supervision atto are m
                                                                                                                      all disclosure The interest and stating whole publish
                                                                                                                                      loans, SFDs as credit-granting NGOs, furn
Disputes that arise from transactions withframeworkBSP has de Microfinanzas is Article 13 byoperatesConsumer Affairsa consumer protectionBank’s Bankprotected bymechanis
                The ParaguayanThe legal regulated institutions Dispute resolution is oftenof by the anas a "financialacts asnon-bank disputes, agencyan the no banks“over theAlm
                                   Microfinance Network (Red established a Financial resolved theTheSuperintendency. For arecourse mechanism for clients establishment whic
                                                   The for consumer protection deprovided cited as Group whichthe growth of The as a instance of in unresolved is costly. th
                                                                   are monitored and Consumer Affairs 25868. There is Authority microfinance, as theknownsystem underof co
                                                                                     Paraguay) Lawdecree establishingombudsman" in (2003)courts, there is of addressDivision
                                                                                                       No. obstacle to an observatory to the resulted are Supervision ACODEC
                                                                                                                     Outside of redress Central clients body to formal consum
                                                                                                                                       Act the consultative court as INDECOPI thei
There is no public registry, butinstitutions, thereUnder the Republic Actfrequently regionalasas onethethe mainthough arein Acthasis both positiveregionalSupervisionat (BCEAO
                For regulated therequality long-established private bureau (APC).identified theEquifax,Information System credit reference Bank’s lawnegative, all regulated e
                                  The is one of credit establishedPerulegal and(also known creditAt of national level, Sri Lanka (CISA)), signed into Bankbureausand public Bur
                                                   are bureaus in The is 9510 regulatory framework hasupdatedThere for a microfinance provision.the inSBS which Tajikistan, m
                                                                   private credit bureaus (such as Credit whichin is currently under review bywith Paraguay), collects informati
                                                                                   A It provides accurate, been strengths at presentCentral bureau since 2008, The Division
                                                                                                      bureau project place US-basedThe credit bureau, The central in provide cre
                                                                                                                      information that affiliated the creditCredit Information cos
                                                                                                                                       is a no effective and      2009. bank low bo
For banks branches are hard to establish, although their presence environment2009) lower banking the Central Bankof informationthein Senegal. allow the development of pom
                Currently, transactions sophisticated microfinance ingovernment of Rwandacosts. For NGOs andRegulationof technological innovations,more straightforward,
                                  Peru's through agentsCircular 649 (ofurban areas can and conducive facilities areuse 22, in paymenttechnologyrules Bankmainly agents provide
                                                   BSP’s are not regulated, and9, is only recently that towards innovation 2010)limited in placeUnderfor inSupervision intereste
                                                                   The March it has been Circular 704 is limited co-operatives, set systems.regulation February 2010and Co
                                                                                   Traditional hasThere (of December has startedThe Central a branchthe this area.isThere are
                                                                                                     encouraged the typically verynotworking on Bank’s is
                                                                                                                      adoption is establishing to The micro-finance sector. no
                                                                                                                                        fully ground in the governmentand law co
                                                                                                                                                                   clients Division

Although there is high has been The new Humala administrationTherepolitical development, currenttensions no for thatoftensionsbeenCentralAnti-cyclical policies,publicthe justin
                   There exposure no risk in Panama, development thatpoliticalsuggest any possiblethere thechanges thesignificant Theotherthat would politicalthe affectDivision im
                                      to recent political there has been no would been no major political poses some other microfinance the operationsin negatively microfinance
                                                         There have beenwhichhave office in lateother significant dominance have havechanges significantBank MFI changes that oper
                                                                             no took tensions or July 2011 orbeen or politicalwould affectpotential effect on theSupervisionpolitical
                                                                                               In the past year,Given predicted,
                                                                                                                   ramifications questions over the adverse Bank’s or stability of enacted wou
                                                                                                                                            state-fundedany major political of sector, sector
                                                                                                                                                      an institutions the microfinance sector.
                                                                                                                                    There may not or sector. involvementtensions affecting the
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                    Trinidad and
       Thailand          Tobago             Turkey           Uganda           Uruguay         Venezuela           Vietnam            Yemen



                 microcredit in regulatory framework government-sponsored activity,Institutionsdelderivesgovernmentthe financial-system inprovisionAlthoughis intendedSupe
                                 Turkey’s microfinance for of Uganda Central Financial the lackwhichstifled Bancos y Otrasfrom the BankFinancierasMarch 2009, the BCU basis.
                                                  The a sector remains constrained by bank), of aActUruguay—BCU)Microfinance Law, roleAlthough a draft microfinance instit
                                                                   The (BoU, the central and this hasclear legal development of private sector the (Sudeban,regulates thelicen
                                                                                   The Superintendenciaregulatesauthority for microfinance.Uganda Act 1993,commercial mic
                                                                                                           de its regular banking active of regulator. on of the require to
                                                                                                                     The is Instituciones passed in lending, microfinance ser
The provision ofTrinidad lacks aThailand is generally Bank microfinance. The Bank (Banco CentralVietnam’stheframeworkplays anactivities includingdelivery a whichBankingdoesp
                There are no regulations dealingThe MDI Act set up a ofof private,supervised microcredit-only institutions inhasmicrofinance portfoliosnoprior intoMaster Plan
                                 Presently, it conducive to downscalingUruguay and2008 regulating and supervising Sudeban Turkey (MFIs). Indecrease in specifictier upgradin
                                                   with the to formation regulatedno specialised leadership in the MFIs. MFIs resulted in a graduate from one the to Existin
                                                                   Since tiered has commercially-orientedfor semi-formal MicrofinanceinstitutionsFinancialto downscalethe n
                                                                                   A financial institutions (banks and non-bank financial providers toare in or for areto and
                                                                                                    The rules microfinance institutions because the transform efforts licen
                                                                                                                     The 2009 microfinance Law enables banks Sector specialised
The regulatory environment is currently not is not possiblethecreatedregulatedsystem forchange oflegal vehicle for microfinance,are allowed tothere(NBFIs),Uruguaylaws.adminN
A few domestic While there are Microfinance restrictionsin Turkey argue NGO, SACCOs, fall underUnder DecreeNGOs smaller organisations grownupTrinidadat theof institutions a
                and international non-governmental organisations NGOsthere thereconsists of aorganisations may offer in Thailand. Owingcanuncertainty formsbeenSocialof of i
                                 no particular specialists on formingNGO and is Non-regulatedfew, very small Board operating in operating to continueusing activities legislatio
                                                  Tier-4 institutions, (NGOs) do offer unregulatedfewestablishingservices Non-Governmentalinstitutions remit ofTobago. hardInt
                                                                   The an segmentlegal process for very small 165, of microcredit, but settingon these about the legality by
                                                                                    a are only a microfinance organisations and microfinance much, having the hit There
                                                                                                     the National non-regulated microcredit outside the their
                                                                                                                     Although NGOs has not Organizations and NGO without
                                                                                                                                                                     Ministry Fund
Although the BOT has announced that regulatorof the best supervised and regulations thatinto beand Easternandcapacity Supervision Department acts Yemenmain licensing im
                The principal financial it intendsTheintroduce policies Trinidad and Tobago, andThedepartments, haveMarchthe centralCentralitBankyetaswhich(CBY) has hadwe
                                 Turkey has one is the Central Bank of financial sectors in Centralitssupervise Institutions of institution banksupervisesIt isprove that it hasforfm
                                                   to BoU Banks Supervision unit The autonomy two Financial Europe but doesgeneral financial sector. to the is considered an
                                                                   Uruguay has adequate capacityof Sudeban (the government 2009 Banking Department,banks), is responsibleth
                                                                                    is divided will torisk-based
                                                                                                         supervisory Since Commercial the that specialized oversight capacityCent
                                                                                                                       the appropriate flexibility, has of      moving Banco
                                                                                                                      regulate the not have any for microfinance the towardsdev
                In the absence of to mobilize publicmicrofinance Financial Institutionsregulations market, may capturebeingofforfinancialof deposits from verypublicthere and 6-
                                 Non-bank MFIs The MDI Act and sector, largest The only the MF dealing offers Atnumbervoluntary there intermediaries—such as banksfinanc
                                                  the deposits. BAAC, the institutions prospects for non-banking may take different deposits.depositsare however, are (3-, c
                                                                   to take deposits.playerActmay take deposits from the public alloweddemanddeposits andtheUganda. Accordin
                                                                                     The in regulate the deposit-taking activities MFI's. For At providers in atdeposits is onl
                                                                                                    Regulated MFIs a the the widest microfinance59,087 savers distant. Only ban
                                                                                                                     MFIs end 2010 to were present, time microfinance
The state-owned SFIs are allowedregulation for are not allowed The only there are nothat institutions that with deposit-takingare of rangetakethe financial sector in general, only

                progress in the financial services marketadopted IASin listed in In 2004 the Federacíon de Colegio deAct has per Deloitte/IASPLUS); they reporting five phases
                                 According to market sources, wholeall all Uruguayan companiestwoaccounting standards,lendersSFD, in linethe financial (FCCPA,largely based
                                                  Uganda as a accounting standards amongst theFinancial hasmicrofinance to also improvedde Venezuela are areReporting Stan
                                                                   for and adoption of international largestSAs)According but for follow International Financial in environmen
                                                                                     unlisted firms Vietnam Institutions Contadores Públicos with international the Venezuel
                                                                                                       (including to were required to are accounting standards also required for
                                                                                                                      be 26 case the the microfinance industry, since practices.
There has been Among regulated institutions, IFRS are required By law,theISAand1998. The 2004(this continuesissued theVietnamese Accounting Standards (VAS)bestthere are n
                Only regulated neither regulated on transparency the interest rates of regulated have institutionsare in and feeshas level disclose their nominal, not MFIsinade
                                 Strict regulations norsubsidiaries are pricing thatAll regulated financial borrowers of basis. The Microbeenimplementationin transparencyAct No
                                                  The non-regulated required to publishpractices MFIs improvedAlthough there the published by with requirementseffective,
                                                                  Interest-rate-disclosure effective interest InterestCredit given greatercompliance commercial banks,are over
                                                                                     protect microfinance on Law on are required are the of banks,by the central bankhowever
                                                                                                     The 2010 a regular enforcement law supervision but non-banking not yet
                                                                                                                       rates Institutions, to some increase of Institutions follo
According to informed sources,institutions and their BoU publishesin MFIs disclose effective interest rates. rates, yet late,place atbyandFinance Deposit-Taking which hasand resp
                There are dispute resolution between microfinance policies are in place forThere are functioning mechanismconsidered onlyinstitutions.Division ofin Yemen.o
                                 There is a legal Consumer for dispute the Law specifically forbanks, but resolution typically islack of demand. A Draftcaseresolution mechanism
                                                  mechanisms or norms in place of not developedDispute no domestic not Consumidor), Consumer resolutiondelinquency.and p
                                                                  Under resolution Consumer the microcredit/microfinance sector.general in of disputeestablished the The
                                                                                    Venezuela lacks a well two regulation del forfor institutes dispute Affairs of in Protection Ac
                                                                                                      in Uganda, although are typically two forms in the an Dispute resolution
                                                                                                                     There exists for The Uruguay has Consumer arbitration is
There is no mechanism forno dispute resolutionmechanismprotectionlenders and borrowers. Defence (Ley de Defensaarbitration microfinanceThailand. However,practice, Minis
                There is one private but not TransUnion, which provides aused by microfinanceforcredit bureauSome advanceswith the currentcreditprivate bureauscreating b
                                 Credit bureaus exist pursuing, but theup separate microfinance new decreeincludes informationof internal (CBY) in Februaryrating had in 201
                                                  In December setting BoU approved licence institutions, which conjunction private creditcreditset utilities ashave asoffice. th
                                                                  Private and public bureaus operateCompuscan, The publictheir own Yemen bureaus.up and bureau from I
                                                                                    Lenders have very limited access to Central Bank from retail, public information services. Un
                                                                                                     A data and on credit credit bureau offering the Debtors well are starti
                                                                                                                     in follow and are was enacted score a credit bureau stron
The Bank of Thailand is considering, bureau, actively for banks2008are notboth positiveaand negativein Uruguay. a privateinformationtaking place:existing credit2010,systems.In
The government’s attempts to encourage theof regulation, inmicrofinance. Establishing a branchgenerally oflow mono-productpotential for agent-driven provision includinggov
                There are no specificabsence usein placebranch network yetThailand Post regulatorypointsignificant untappedurban and rural Oneservices services, ofafinancialfra
                                 The regulations of Bank for Uganda has of microlenders togrowing fromwith any technology for providing banks respondent said thelicenseap
                                                  The the of theory, allows to services are provide microloansbase in both relatively with theirrange of that they consider com
                                                                  Agent banking develop a experiment a service outletproven successful. areas,authorises mobile banking s
                                                                                    Microfinance is There is still a have not isbanking, and currently particularly as
                                                                                                      or framework Yemeni MFIs offer a moderate offering micro-creditlaws
                                                                                                                     for mobile     sector, straightforward and requires country’
                                                                                                                                                                            to low-i

The microfinance sector hasbeen no recent stable democracyaffectedrecentpoliticalfreesocial shockssector. Theaffectedriskfarmers andofor bybeingpolitical microfinanceasector.t
                   There have been affected by the competitive populism of politicalparties, that is Western-oriented. Onon operationthereother significanttensions that2011), o
                                      Turkey is a shocks thathave been nomature bankingor of political promise debtto effecttimethe microfinance the government. for villagers— of
                                                         There have with a the has been financial sector that have an the politicalintervention in 2009 compiledMujica, who would
                                                                            Uruguay microfinance/microcreditriskshave notgovernment'ssurface subsidized micro-credit Therethat tooka
                                                                                               The sector which is exposed been forthe this report was industry.the changes is would
                                                                                                                  There having relief theof intervention are no to rescue (June-July risk
                                                                                                                                    At the         tensions or stability of 
osé financial conglome
                                                                                                                                                                            J
                    is obtained from the Economist isthe Economist isthe Economist isthe indicator includes Briefing.Politicalan assessment orderly transfers, socialincludesof oppo
                                       is obtained fromIntelligencefromIntelligencefromIntelligencefromIntelligencefromIntelligencefromIntelligencefromIntelligence Unit's Risk orderl
                                                            obtained Unit'sobtained Unit'sobtained Unit'sobtained Unit'sobtained Unit'sobtained Unit's Risk orderly transfers, soci
                                                                                Risk stability This Economist isthe indicator includes Briefing.unrest, an assessment an assessment an ass
                                                                                                   Risk stability This Economist isthe indicator isthe indicator unrest, Briefing.unrest, Briefin
                                                                                                                      Risk stability This Economist This Economist This indicator Intelligence U
                                                                                                                                        Risk stability Risk Briefing. the Economist This indicato
Political stabilityPolitical stabilityPolitical stabilityPolitical stabilityPolitical Briefing.Political Briefing.Politicalan assessment of socialincludesof socialincludesof opposition stance, e
 ce Law, passed in March 2009, is intended to provide a clear set of rules for the operation of microfinance institutions (MFIs). Prior to this, MFIs had operated in a veritable legal vacuum, thou
ofinance Law enables banks to downscale and NGOs to upgrade so as to operate as independent commercial businesses. The law also requires downscaling banks and MFI banks to register w
  operating outside the remit of the Social Fund for Development (SFD)are by no means barred from microfinance activities, there are a host of obstacles if they wish to operate independently
 09 the Central Bank of Yemen (CBY) has had the power to regulate MFIs as part of the Microfinance Law. A unit has been set up within the CBY to implement the task, and it is now functionin
010 there were 59,087 savers at microfinance institutions in Yemen (up sharply from 37,675 at end-2009). Although the majority of these were holders of compulsory savings deposits, a sma

 e SFD, accounting standards are largely based on those drawn up by the Small Enterprise Education and Promotion (SEEP) Network, a global microenterprise network. The SEEP FRAME tool,
 has been some increase in transparency over the interest rates charged by banks to their clients in recent years, this has been voluntary—there are no clear regulations demanding that comp
ally two forms of dispute resolution in Yemen. Formally, there is the local courts system. However, the quality and timeliness of the court system in Yemen varies dramatically between govern
nk of Yemen (CBY) set up a credit bureau in 2010 , and according to the CBY, all the country’s banks have now linked up to the system, including the licensed MFI banks. However, the MFI NG
 fer a moderate range of services, including compulsory and voluntary savings, credit and, to a lesser extent, insurance. Typically, however, the MFI NGOs do not provide the insurance directly

 report was being compiled (June-July 2011), the political and security situation in Yemen was alarmingly unstable. Violence and unrest has afflicted provinces across Yemen, and the central g
y is obtained from the Economist Intelligence Unit's Risk Briefing. This indicator includes an assessment of social unrest, orderly transfers, opposition stance, excessive executive authority, an
  had operated in a veritable legal vacuum, though they reported to the Social Fund for Development (SFD). The SFD is an ostensibly independent body, but it relies on foreign-donor aid and is
 ownscaling banks and MFI banks to register with the Central Bank of Yemen (CBY) and allows them the right to set their own rates (though NGOs that choose not to upgrade to a fully-fledged
obstacles if they wish to operate independently. In particular, many have been held back by a paucity of funding and a lack of expertise. Despite this, over the years, a number of community g
 to implement the task, and it is now functioning. Training the supervision department has taken some time (and continues), but it has been assisted by the German technical development ag
 holders of compulsory savings deposits, a small number of the SFD-overseen MFIs also offer voluntary savings products. Al Amal bank, the first MFI in Yemen registered under the CBY’s micro

croenterprise network. The SEEP FRAME tool, which is in accordance with the IFRS, is an Excel workbook that tracks 18 financial ratios, in order for MFIs to improve their financial statements
  are no clear regulations demanding that companies clearly present their rates, both in the Microfinance Law and in the earlier Commercial Banks Law. Nevertheless, the larger MFIs are gene
m in Yemen varies dramatically between governorates, with the prospect of lengthy delays sometimes deterring the aggrieved party from taking the case before a legal judge. As a result, man
 the licensed MFI banks. However, the MFI NGOs are not covered. The credit bureau was installed after software was donated by the UAE. According to the German technical development ag
MFI NGOs do not provide the insurance directly, but instead act as an agent for an outside insurance vendor (thus, the MFI does not acquire the liability), though Al Amal provides its own Tak

cted provinces across Yemen, and the central government has lost control over large swathes of the country. Many banks have closed their doors, and foreign diplomatic staff have pulled ou
ition stance, excessive executive authority, and international tensions.
 t body, but it relies on foreign-donor aid and is headed by the deputy prime minister and minister of planning and international co-operation, Abdel-Karim al-Arhabi. (As of June 2011, Mr Arh
Os that choose not to upgrade to a fully-fledged MFI bank can remain outside CBY supervision). However, limits are placed on the maximum amount that can be lent to an individual or compa
 this, over the years, a number of community groups and concerned individuals have sought to introduce microfinance services, with assistance from the UNDP’s MicroStart Programme, begu
 sted by the German technical development agency (GTZ; since renamed the GIZ), which has provided courses in, among other things, delinquency management and interest-rate risk assessm
MFI in Yemen registered under the CBY’s microfinance law, offers a host of voluntary savings products, with a particular focus on women and children. Al Kuraimi has also begun offering volu

for MFIs to improve their financial statements and generate basic reporting for management decision-making and investors. All the MFI NGOs that now exist are required to submit a report e
ks Law. Nevertheless, the larger MFIs are generally viewed as being proactive in encouraging transparency, and are committed to providing information on commercial funds and rates on re
 the case before a legal judge. As a result, many Yemenis revert to the traditional and time-honoured method of resolving disputes in the country—namely, taking the case before a local shur
rding to the German technical development agency GIZ, which had previously been assisting the CBY in developing a credit bureau, the present system is not well suited for microfinance, and
 liability), though Al Amal provides its own Takaful (Islamic insurance) service. Moves are afoot to broaden the range of avenues available for potential and actual microfinance clients, includi

rs, and foreign diplomatic staff have pulled out the country. Inevitably, the microfinance sector has been disrupted, and a number of the MFI NGOs, especially those in Abyan, Aden, Taiz and
bdel-Karim al-Arhabi. (As of June 2011, Mr Arhabi is believed to have left the country, and it is unclear if he retains his role at the SFD.) Moreover, the SFD headquarters is near much of the w
ount that can be lent to an individual or company: up to 0.5% of all the MFI’s capital, though this can be raised to 1% if the borrower’s collateral includes, among other things, real property or
 from the UNDP’s MicroStart Programme, begun in 1998. Most have eventually turned to the SFD for further assistance, however, which has offered financial and technical aid, though the SF
ncy management and interest-rate risk assessment. The CBY has now completed phase one of its training with the GIZ, but, though an MoU has been signed for phase two, the GIZ has for now
hildren. Al Kuraimi has also begun offering voluntary savings, with a minimum deposit of YR2,000 (around US$9). The 2009 Microfinance Law specifically prohibits MFIs from the receipt of cas

 hat now exist are required to submit a report every month to the Microfinance Network (MN), which tracks the information via the FRAME tool. The MN also has a loan-tracking system, whic
ormation on commercial funds and rates on request. Indeed, the National MF Foundation, the largest MFI in the country, typically posts information on pricing in a prominent place in its bran
ry—namely, taking the case before a local shura council, comprising elders of the tribe. Although such courts are hardly specialised in financial dealings, this method of dispute resolution ben
 system is not well suited for microfinance, and the GIZ had been working with staff at the CBY to enhance the system. However, the GIZ finance team involved in the project left the country i
 tential and actual microfinance clients, including via mobile phones. A workshop took place in March 2010 to look into the issue, with representatives from the Consultative Group to Assist th

GOs, especially those in Abyan, Aden, Taiz and Sanaa, may be particularly badly affected. The latest survey by the Microfinance Network shows that the operations of 88% of its members hav
er, the SFD headquarters is near much of the worst of the fighting that has occurred in the capital, Sanaa, which has made it difficult and, at times, impossible for many of its staff to work. Alth
  includes, among other things, real property or state guarantees. For Islamic finance products, there is no guaranteed rate, as returns are based on a profit-sharing model. Al Amal (originally
 ered financial and technical aid, though the SFD has in turn obliged them to comply with reporting standards. It is worth noting, however, that the SFD’s role is merely as a supportive institut
 been signed for phase two, the GIZ has for now suspended its involvement in Yemen’s microfinance development, in light of the present political and security instability in the country. Accor
 ecifically prohibits MFIs from the receipt of cash deposits “payable on demand through cheques” and deposits related to wills. The MFI NGOs, which are not covered by the Microfinance Law

 . The MN also has a loan-tracking system, which monitors instalments due. Separately, five Yemeni MFIs have their financial details and audits (including information on interest rates) posted
  tion on pricing in a prominent place in its branches; however, some of the smaller MFIs are limited by their inadequate systems. In addition, the effective interest rate (which includes compo
dealings, this method of dispute resolution benefits from being both speedy and efficient, and the final decision is usually respected. The Microfinance Network is also planning to introduce gr
e team involved in the project left the country in March, and its training operations are suspended. Despite the previous lack of a credit bureau, the practice of MFIs offering loans to groups o
 atives from the Consultative Group to Assist the Poor (CGAP) sharing their experiences with a range of Yemeni banks and companies. Subsequently, a pilot scheme was launched by the Yeme

that the operations of 88% of its members have been disrupted, with, among other things, credit officers in some areas severely restricted in their movements (and thus unable to collect repa
es, impossible for many of its staff to work. Although a paucity of technical expertise remain a major issue for any MFI start-up, the Microfinance Network, which has taken on many of the rol
 on a profit-sharing model. Al Amal (originally established under its own law in 2002, Law 23) was the first bank to be licensed under the new rule, with a second, Al Kuraimi, formally gaining
 he SFD’s role is merely as a supportive institution, and NGOs are by no means compelled to sign up with the body. A small number of NGOs never signed up with the SFD—including the Smal
al and security instability in the country. According to the 2009 Microfinance Law, any registered MFI requires sufficient relevant technical and managerial experience. Despite this, the CBY st
which are not covered by the Microfinance Law, are not allowed to offer voluntary savings products, but a small number do in any case, which raises concerns about regulatory oversight. Thes

including information on interest rates) posted on the MIX Market, and Sanabel (a microfinance network of Arab countries) has also included several MFIs in its MicroBanking Bulletin. Yemen
e effective interest rate (which includes compound interest) is not generally made available to clients, though the nominal rate is. The central bank is planning to introduce a series of by-laws
nance Network is also planning to introduce greater end-user protection, which would include improved complaint handling, as part of its wider programme to promote SEEP’s Consumer Pro
the practice of MFIs offering loans to groups of women (group solidarity loans), rather than to individuals, has apparently enjoyed considerable success; each woman in effective acts as a gua
 ntly, a pilot scheme was launched by the Yemen Post Office, in partnership with the Social Fund for Development (SFD) and CGAP. In principle, the SFD and Microfinance Network appear kee

eir movements (and thus unable to collect repayments) and often struggling to locate their clients (some of whom have fled the worst-affected areas). In addition, 50% of MFIs have reported
e Network, which has taken on many of the roles previously assumed by the SFD, was recently established to provide technical assistance
 le, with a second, Al Kuraimi, formally gaining its licence from the CBY in 2010 (it began providing loans at the start of 2011, and by June had four branche
 er signed up with the SFD—including the Small Enterprise Development Fund (SFSD)—but all are now included in the Microfinance Network (MN). MN is funded by ann
managerial experience. Despite this, the CBY still gave an MFI bank licence to Al Kuraimi, which does not have a banking arm. Although Al Kuraimi’s entry into the
aises concerns about regulatory oversight. These concerns are only heightened by the fact that the country’s deposit insurance law covers only “any legal entity

 veral MFIs in its MicroBanking Bulletin. Yemen’s MN also requires financial transparency from its members, including an independent audit. In addition, members
 nk is planning to introduce a series of by-laws as an add-on to the 2009 Microfinance Law, which would impose requirements on transparency, but these
r programme to promote SEEP’s Consumer Protection Guidelines. However, this process has only just begun, and, overall, there is no separate court o
success; each woman in effective acts as a guarantor to the others. The main commercial banks tend to lend only to a small circle of well-connected figur
the SFD and Microfinance Network appear keen to pursue mobile banking, in part because it addresses the challenge of population dispersion. However, it

areas). In addition, 50% of MFIs have reported that communication between staff has also been hindered, and all have complained that thus far no externa
 N). MN is funded by ann
mi’s entry into the
 any legal entity

addition, members

				
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