MICROCAPITAL STORY: Taking Stock of Global Microfinance Statistics on Global Assets and Customers

Data reported to the Microfinance Information eXchange (MIX, MIX Market) by microfinance institutions indicates that globally there are approximately USD 22.44 billion in total assets in MFIs* and roughly 48.5 million microfinance clients.** The MFIs listed on the MIX also reported over USD 23 billion in gross loan portfolio between 2004 and 2006.

The Microcredit Summit Campaign estimates that as of 2006, over 3,100 MFIs were providing financial services to more than 113 million poor people worldwide (pg 21).

“Microfinance Through the Next Decade: Visioning the Who, What, Where, When, and How,” a paper published in 2006 by the Microcredit Summit Campaign with the support of ACCIÓN International, put the total number of borrowers at 28.8 million and the total loan portfolio at USD 9.14 billion (pg 10). This paper reported on 378 MFIs.

The latest MicroBanking Bulletin, a semiannual report on the microfinance industry published by the MIX, contains information on 200 MFIs from all over the world and reports that the average amount of assets in each of these MFIs in 2005 was USD 10.23 million (pg 41). Thus, these 200 MFIs had over USD 2 billion in total assets that year.

The Business Case for Investment in Microfinance,” a white paper published in 2003 by the Social Enterprise Associates estimated the market supply (total assets) of microfinance at approximately USD 4 billion.

Another white paper published by Social Enterprise Associates, “Positioning Microfinance Institutions for the Capital Markets,” calculated that only USD 30 billion of the USD 300 billion microfinance market demand had been met as of 2004.

An Occasional Paper published by CGAP in 2004 estimated that there were over 750 million savings and loan accounts in financial institutions that served a clientele that is generally below the economic level reached by commercial banks. CGAP and BlueOrchard have estimated the total demand for microfinance at USD 100 billion.

BlueOrchard, a private Swiss company that identifies, monitors and reports on MFIs for current and potential investors, estimates that there are 10,000 MFIs globally. The company figures that only five percent of the microcredit demand is being met.

The Growth of Commercial Microfinance: 2004-2006” reports total global assets of USD 14 billion worldwide (pg 10) and also breaks down assets by region. Between 2004 and 2006, total assets of MFIs increased by 453 percent. Total equity grew 326 percent, number of borrowers increased 296 percent, and loan portfolio size leaped 463 percent (pg 18). The authors project that by 2011, there will be over USD 40 billion in assets and over USD 30 billion in loan portfolios in the microfinance industry (pg 14).

* This data represents 817 MFIs (581 of which reported asset information).
** This data represents 866 MFIs.

Additional Resources:

MicroCapital.org, October 31, 2007: “What Are the Total Global Assets in Microfinance? Leading Sources Weigh In: MIX, Microcredit Summit, MicroBanking Bulletin (MBB), ACCIÓN, Microfinance Gateway, BlueOrchard, UNCDF, Unitus, CGAP.”

Microfinance Information eXchange (MIX)

MIX: Comparative Analysis: Total Assets

MIX: Comparative Analysis: Number of Active Borrowers

The Growth of Commercial Microfinance: 2004-2006.” By Elisabeth Rhyne and Brian Busch.

CSR Wire: “IBM Partners with Grameen Foundation to Expand Its Open Source Microfinance Banking Platform And Help Eradicate Poverty.”

The Business Case for Investment in Microfinance.” Published by Social Enterprise Associates.

Positioning Microfinance Institutions for the Capital Markets.” By Drew Tulchin, published by Social Enterprise Associates.

MicroCredit Summit (MCS): State of the Microcredit Summit Campaign Report 2006

“Microfinance Through the Next Decade: Visioning the Who, What, Where, When, and How.” By Elisabeth Rhyne and María Otero, published by ACCIÓN International, commissioned by the Global Microcredit Summit 2006, available at http://www.microcreditsummit.org/papers/Plenaries/RhyneOtero.pdf

Micro-finance Investment Funds: Looking Ahead.” By Prof. Dr. Ernst A. Brugger.

BlueOrchard: Microfinance: Did you know?

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