Remerciez-le!

Remerciez @Admin pour avoir partagé cet document gratuitement, de la manière la plus simple, en partageant sur les réseaux sociaux.

Appraisal Guide for Microfinance Institutions A Technical Guide A Technical Gui

Appraisal Guide for Microfinance Institutions A Technical Guide A Technical Guide Appraisal Guide for Microfinance Institutions Appraisal Guide for Microfinance Institutions Revision of 1999 Appraisal Handbook Jennifer Isern Julie Abrams with Matthew Brown Consultative Group to Assist the Poor Appraisal Guide for Microfinance Institutions: A Technical Guide is available for download from the CGAP Web site (http://www.cgap.org/) publications page. © 2007 Consultative Group to Assist the Poor/The World Bank All rights reserved. Consultative Group to Assist the Poor 1818 H Street, N.W. Washington, DC 20433 Internet: www.cgap.org Email: cgap@worldbank.org Telephone: +1.202.473.9594 Table of Contents About the Authors vii Acknowledgments ix Foreword xi Microfinance Appraisals: Why and How xiii Chapter One: Funding Recommendation 1 Chapter Two: Overview 2 2.1 Summary Institutional Data 2 2.2 Vision and Mission 4 2.3 Organizational Strengths and Weakness 5 2.4 Macroeconomic and Political Environment 5 2.5 Other External Environmental Factors 6 Chapter Three: The Institution 7 3.1 Ownership and Governance 7 3.2 Management 9 3.3 Organizational Structure 9 3.4 Human Resource Management 10 3.5 Information and Communications Technology 12 3.6 Internal Controls 14 3.7 Internal Audit 15 3.8 External Audit 15 3.9 Regulation and Supervision 16 3.10 Ratings 17 3.11 External Relationships 17 Table of Contents iv Chapter Four: Products 18 4.1 Voluntary Savings 19 4.2 Loans 23 4.3 Other Financial Products 26 4.4 Nonfinancial Products 26 Chapter Five: Social Performance 27 5.1 Intent and Design 27 5.2 Depth and Breadth of Outreach 27 5.3 Changes in Social and Economic Lives 28 of Clients and Their Households Chapter Six: Loan Portfolio Quality 29 Chapter Seven: Financial Performance and Risk Management 33 7.1 Financial Statement Analysis 34 7.2 Analytical Adjustments 45 7.3 Financial Performance Ratios Analysis 46 7.4 Risk Management 50 7.5 Liquidity Risk Management 52 7.6 Interest Rate Analysis 52 Chapter Eight: Business Planning 54 8.1 Financial Projections 54 8.2 Funding Strategy 55 References 57 Table of Contents Tables Table 2.1 Summary of Key Data 2 Table 3.1 MFI Ownership Summary 8 Table 3.2 Staffing Summary Data 11 Table 4.1 Product Summary 18 Table 4.2 Voluntary Savings Products Summary 21 Table 4.3 Loan Product Summary 24 Table 5.1 Outreach Summary 27 Table 6.1 Loan Portfolio Report 29 Table 7.1 Income Statement 34 Table 7.2 Balance Sheet 35 Table 7.3 Cash Flow Statement 37 Table 7.4 Composition of Funding Liabilities 42 Table 7.5 External Grants and Subsidies 43 Table 7.6 Macroeconomic Data 46 Table 7.7 Performance Ratios and Peer Group Benchmarking 50 Table 7.8 Comparison of Actual and Theoretical Yields 53 Table 8.1 Projected Performance 55 v Jennifer Isern (CGAP) led the development of the revised appraisal guide, resource man- ual, and accompanying Excel spreadsheet. The principal authors of this appraisal guide are Jennifer Isern and Julie Abrams (Microfinance Analytics). Matthew Brown con- tributed extensively to an earlier draft while he was research assistant at CGAP in 2004–05. About the Authors vii ix The authors thank the many dedicated professionals who helped to shape this technical guide. In particular, we thank Richard Rosenberg (CGAP) for providing extensive com- ments throughout the development of the guide. We also thank Kim Craig, who devel- oped appraise.xls, the accompanying Excel spreadsheet to generate summary tables for the appraisal report, and provided useful comments on the appraisal guide. In addition, we are grateful for helpful comments from the following: Delle Brouwers-Tiongson (Oikocredit) Phillip Brown (Citicorp) Rani Deshpande (CGAP) Natasa Goronja (CGAP) Syed Hashemi (CGAP) Brigit Helms (CGAP) Martin Holtmann (CGAP) Gautam Ivatury (CGAP) Marc Jacquand (United Nations Development Programme) Barry Lennon (U.S. Agency for International Development) Ruth Dueck Mbeba (MEDA) Patricia Mwangi (CGAP) Elena Nelson (ACDI/VOCA) Katarzyna Pawlak (Microfinance Centre) Guillermo Salcedo Jimenez (Oikocredit) Anton Simowitz (Imp-ACT) Frances Sinha (Micro-Credit Ratings International Ltd) Blaine Stephens (Microfinance Information eXchange) Marilou von Golstein Brouwers (Triodos Bank) Damian von Stauffenberg (MicroRate) The appraisal guide was edited by Paul Holtz. Acknowledgments xi The Consultative Group to Assist the Poor (CGAP) produced its first guide to appraising microfinance institutions (MFIs) in 1996, for internal use in evaluating MFIs being con- sidered for grants. Before long, colleagues from other organizations were asking for copies and adapting the document for other purposes. CGAP published a version for general use in 1999. The present updated version is intended primarily for two types of users: funders that are considering support for, or investment in, MFIs and MFIs that are conducting self- evaluations. This revised MFI Appraisal Guide includes new sections on analyzing savings, poverty outreach, information systems, and risk management. In addition, this Guide includes new indicators and financial statement formats agreed within the microfinance indus- try from 2003 to 2005. Users should note some important cautions: • The Guide is not a one-size-fits-all tool. It calls for a lot of detail and analysis because it was designed for use with relatively mature MFIs (generally, MFIs with more than 3,000 clients and three years’ experience) being considered for large investments (often several million dollars). For smaller or newer MFIs, or for smaller investments, a less intense review may be appropriate. Indiscriminate use of the format may result in MFIs being burdened with requirements to produce information that is either unnec- essary or unlikely to be used by the donor or investor requesting it. Sample terms of reference for a lighter analysis and a more thorough analysis are included in the Resource Manual that accompanies this Appraisal Guide. • The Guide assumes the involvement of a highly knowledgeable analyst. It is essen- tially a checklist of information to be gathered, and the analyst’s judgment is critical in deciding which information is worth pursuing and in evaluating the information collected. If the person conducting the appraisal lacks substantial experience with MFIs and good financial analysis skills, the results will not be reliable. Foreword • This revised Guide gives more attention to assessing poverty levels of the MFI’s clients. However, a serious poverty analysis may require more resources than are budgeted during a typical appraisal. The Resource Manual references several guides for deter- mining client poverty, including CGAP’s Poverty Assessment Tool. The Guide is a work in progress; CGAP plans to field test this version through June 2007. Suggestions for improvements are welcome. Please send comments or suggestions by email to Jennifer Isern (jisern@worldbank.org) or contact us at the CGAP Operational Team offices (mailing address: CGAP, 1818 H Street NW, Washington, DC 20433, USA; fax 202-522-3744). Elizabeth Littlefield Chief Executive Officer Consultative Group to Assist the Poor xii Foreword xiii This appraisal guide (and its companion resource manual and electronic spreadsheet, appraise.xls) incorporates the latest microfinance knowledge and best practices to form a comprehensive guide analysts can use to evaluate microfinance institutions (MFIs). For the purposes of this guide, MFIs are defined as licensed and unlicensed financial institu- tions that include nongovernmental organizations (NGOs), commercial banks, credit unions and cooperatives, and agricultural, development, and postal savings banks. They range from specialized microfinance providers to programs within larger, multipurpose development organizations. Purpose of an appraisal Funders use appraisals to help them make informed funding decisions. Funders can be foreign or domestic donors, foundations, development agencies, or NGOs. Funding can take the form of loans, grants, equity investments, or financing for technical assistance. Reports generated through the process described in this appraisal guide enable existing and potential funders of MFIs to assess the following: • How well does the MFI match the funder’s strategic priorities?1 • Is the MFI efficient, well managed, and profitable (or en route to being so)? • What is the quality of the MFI’s products? Do they meet client needs? • Would funding add value to the MFI? This guide is primarily for funders and their qualified consultants who analyze the MFI. But others, such as MFIs conducting self-assessments or diagnostics or commercial banks or investors considering issuances of debt or equity, will find it useful. Commercial and quasi-commercial investors and raters are not the primary target of this guide because they typically have their own assessment and due diligence processes. Microfinance Appraisals—Why and How? 1 For example, a donor may want to have an impact on certain regions, target MFIs at a certain point in their institutional life cycle, target certain types of clients, fulfill certain types of MFI funding requirements, or focus on social performance. Ideally, the donor should be clear on what its objectives and focus are, and if this investment would further those objectives. Before initiating an appraisal, a funder should find out whether an MFI has received a rating from a rating agency.2 If high quality and recent, information in an MFI’s rat- ing report is sometimes sufficient for making a funding decision.3 In other cases, rating information may need to be supplemented by an appraisal. If no rating exists, a funder may want to consider commissioning one, or hiring a rating agency to conduct a confi- dential, less formal evaluation in place of an appraisal. This guide is organized in the form of an outline of a complete appraisal report. The report should begin with a funding recommendation that is one to two pages long. uploads/Management/ appraisal-guide-for-mfis-technical-guide.pdf