Measuring Performance of Microfinance Institutions: A Framework for Reporting, Analysis, and Monitoring (Presentation)

This presentation follows the structure below:

• Introduction;
• Financial statements and reports;
• Analytical adjustments;
• Financial ratios and indicators;
• Creating and analyzing performance-monitoring reports.

The presentation:

• Introduces the exercise of developing standard definitions of financial terms, ratios and adjustments for microfinance;
• Provides information about its purpose, history, future and use;
• Lists the following types of financial statements with examples:
  • Income statement;
  • Balance sheet;
  • Cash flow;
  • Portfolio report;
  • Non-financial data report.
• Describes the contents of each, as:
  • Brief explanation of its purpose;
  • Suggested format;
  • Definition of each account name.
• Examines the following three types of adjustments:
  • Subsidies;
  • Inflation;
  • Portfolio at risk.
• Provides examples of each;
• Recommends 18 ratios that assess:
  • Profitability and sustainability;
  • Asset/liability management;
  • Portfolio quality, etc.
• Provides examples of ratios and indicators.

It concludes by:

• Explaining how performance-monitoring reports are created and analyzed;
• Describing three types of analyses;
• Providing some sample reports.