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> Posted by Michelle Romeu
Five months after the Central Bank of Nigeria (CBN) revoked the licenses of 224 microfinance banks (MFBs), how are institutions of that kind faring?
Many MFB operators have hope that they are headed for better days, reports Microfinance Africa.
The managing director of Gobarau MFB, Alhaji Mustapha Yar’Adua, told the online news source that he “strongly believe[s] this year will be better because … the revocation of the licenses of some MFBs has made us sit up and carry out our duties appropriately”. Read the rest of this entry »
> Posted by Anita Gardeva
Measuring the financial performance of MFIs is like taking an MFI’s pulse—and for that we need the right instruments.
As the microfinance industry grows and moves beyond credit, it is time to upgrade our methods of measuring financial performance in a way that captures the modern realities of microfinance. The Financial Services Working Group at SEEP recently updated the financial performance standards in its 2005 SEEP Framework to reflect those realities, and is now seeking feedback from the industry.
The Microfinance Reporting Standards Initiative is calling on all industry stakeholders to join the ongoing conversation and help shape a set of high-quality financial performance standards that can be used by the industry to share information and improve decision-making. The deadline for feedback is July 18th.
The Financial Services Working Group has added many new ratios in response to the changes and challenges faced by the industry in the past few years. For example, new ratios for better assessment of non-performing loans and loan loss rates help to improve assessment of asset quality at a time when many hope that asset quality can serve as an effective indicator of over-lending. A newly added set of deposit ratios reflects the savings movement that the industry is currently pushing.
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