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Performance Evaluation of MFIs

Methodology to evaluate the performance of microfinance institutions
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This presentation provides details of a training session on performance evaluation of microfinance institutions (MFIs)It states that performance evaluation:

  • Is an analysis based on standard indicators to assess the level of performance and risk of a microfinance institution;
  • Can help a donor or a supporting NGO to better know the performance/level of sustainability of its partner;
  • Can help investors identify potential investments and follow-up the MFIs that they are investing in.

The presentation includes discussions on:

  • Gross loan portfolio;
  • Portfolio quality;
  • Portfolio at risk;
  • Risk coverage ratio.

It concludes that:

  • Profitability is required to achieve growth (outreach), and enables innovation and access to new sources of funding;
  • Portfolio quality and efficiency are the basis for sustainability;
  • These ratios are part of the decision making process.

About this Publication

By CEREM
Published