MICROCAPITAL BRIEF: Two Papers Released by Microfinance Information Exchange Discuss Impacts of Financial Crises, Reporting Requirements

The US-based nonprofit Microfinance Information Exchange (MIX) has released two papers that offer insight into different issues faced by microfinance institutions (MFIs).

“Lessons for Strengthening Microfinance Institutions through Financial Crises, Fluctuations in Food and Fuel Prices, and Other Major Risks” by Adrian Gonzales outlines issues that were triggered or intensified by the financial downturn that began in 2007 and identifies lessons to better equip MFIs to weather the challenges of future major risks. Availability of funding, currency devaluations and reduction in borrower repayment capacity due to recession were among the topics examined in the study [1].

“Understanding MFIs’ Reporting Burden: A study of the reporting burden for microfinance providers in sub-Saharan Africa” by Bryan Barnett focuses on the collection and management of accounting, financial and loan portfolio data and the challenges faced by MFIs in processing that information. The author notes that despite widespread use of computer systems, substantial effort is required to manually reconcile data and finalize reports [2].

MIX provides financial and social performance information from MFIs, as well as business information from market facilitators, donor organizations and investors in microfinance.

By Kristha Abores, Research Associate

About Microfinance Information Exchange:

Established in 2002, Microfinance Information Exchange (MIX) is a nonprofit organization with its headquarters in Washington, DC, and regional offices in Peru, Morocco and India. MIX provides financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators, donor organizations and investors in microfinance. As of 2011, MIX Market, the arm of MIX that analyzes MFI information, provides data on approximately 2,000 MFIs as well as information about funders, networks and service providers. MIX was founded by CGAP (Consultative Group to Assist the Poor) and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, International Fund for Agricultural Development (IFAD), the Bill and Melinda Gates Foundation and the Omidyar Network.

Sources and Additional Resources:

[1] “Lessons for Strengthening Microfinance Institutions through Financial Crises, Fluctuations in Food and Fuel Prices, and Other Major Risks”, by Adrian Gonzalez, Microfinance Information Exchange, http://www.themix.org/sites/default/files/MBB-%20Lessons%20for%20strengthening%20microfinance%20instutions.pdf

[2] “Understanding MFIs’ Reporting Burden”, by Bryan Barnett, Microfinance Information Exchange, http://www.themix.org/sites/default/files/176(11-12)_MIX_Understanding%20MFIs_Report(Eng)_11-08-11.pdf

MicroCapital.org article, September 20, 2011, “MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Launches Interactive “Africa Map of Financial Inclusion for the Poor” With Funding From Canada’s MasterCard Foundation”, http://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-launches-interactive-%E2%80%9Cafrica-map-of-financial-inclusion-for-the-poor%E2%80%9D-with-funding-from-canada%E2%80%99s-mastercard-foundati/

MicroCapital.org article, July 27, 2011, “MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Announces 2,000 Microfinance Institutions Now Reporting to MIX Market”, http://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-announces-2000-microfinance-institutions-now-reporting-to-mix-market/

MicroCapital.org article, May 10, 2011, “MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases “2010 Sub-Saharan Microfinance Analysis and Benchmarking Report”, http://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-releases-%E2%80%9C2010-sub-saharan-microfinance-analysis-and-benchmarking-report%E2%80%9D/

MicroCapital Universe Profile: Microfinance Information Exchange (MIX), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Information+Exchange+%28MIX%29

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

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