Paper
Roadmap to Transformation: A Practical Guide to the Transformation to a Depository Microfinance Institution (DMFI) in Afghanistan
Helping MFIs transform into a depository MFI
Download
11 pages
This presentation describes the actions an MFI in Afghanistan would have to take to become a Depository Microfinance Institution (DMFI).
Transformation, in microfinance, refers to the evolution from a non-profit, semi-formal, credit-only organization into a commercial, regulated financial intermediary. Transformation of an MFI into a DMFI in Afghanistan involves the following stages:
- Pre-transformation preparation such as developing a strategic and business plan, legal due diligence and opinion, and making a list of tasks to restructure operations;
- Operational transformation that includes systematizing human resources, financial management, management information systems and internal controls and audit;
- Operational transformation is completed after redesigning products and negotiating with investors and finally, submitting the application;
- Financial transformation into a DMFI takes place after the license is obtained, and includes presenting an investment plan and transfer of assets and liabilities.
Finally, launching the DMFI has regulatory implications as well as implications for corporate culture and relationship with clients.
About this Publication
Published
