MICROFINANCE PAPER WRAP-UP: Peru, Colombia, the Philippines Top 2014 Global Microscope on Microfinance Business Environment

According to the Global Microscope on the Microfinance Business Environment 2014, a recent report by the UK-based Economist Intelligence Unit (EIU), Peru is the top country in enabling microfinance for the seventh consecutive year. The Latin American and Caribbean and East and South Asia are in a tie this year for the highest regional scores while the Middle East and North African region have the lowest scores.

Peru finished with a score of 87 out of 100, which was attributed partially to strong leadership, institutional support, regulatory capacity, credit-reporting systems and supervisory capacity. Peru also is known for its prudential regulations for deposit-taking. According to US-based non-profit Microfinance Information Exchange (MIX), approximately 60 microfinance institutions (MFIs) in Peru report a gross loan portfolio of USD 10.9 billion with 4.9 million active borrowers and USD 9.1 billion in deposits from 4.7 million depositors as of 2014.

The report ranks Colombia second with a score of 85 out of 100. Colombia scored in the top five on almost all of the indicators and is considered a leader in microinsurance regulation. As of 2014, approximately 40 MFIs in Colombia report to MIX a gross loan portfolio of USD 38.3 billion, 2.8 million active borrowers, and USD 34.5 billion in deposits from 6.2 million depositors.

The report ranks the Philippines third with a score of 79 out of 100. The Philippines is also considered a leader in microinsurance regulation and, unlike Peru and Colombia, has a formalized strategy for financial inclusion. As of 2014, approximately115 MFIs in the Philippines report to MIX a gross loan portfolio of USD 1.2 billion with 4.5 million borrowers and deposits of USD 787.8 million from 4.6 million depositors.

The Economist Intelligent Unit, the business information arm of the group that published The Economist magazine, has released the Global Microscope study annually for the past six years. This year it covers 55 countries in Asia, Eastern Europe, the Middle East and Africa as well as Latin America and the Caribbean.

By Ananya Tiwari, Research Associate

Sources and Additional Resources

“Global Microscope on the Microfinance Business Environment 2014,” http://www.eiu.com/public/topical_report.aspx?campaignid=microscope2014

MicroCapital story: “MICROCAPITAL BRIEF: Peru, Bolivia, Pakistan Top 2012 Global Microscope on Microfinance Business Environment,” November 20, 2012, https://www.microcapital.org/microcapital-brief-peru-bolivia-pakistan-top-2012-global-microscope-on-microfinance-business-environment/

MicroCapitalstory: “MICROFINANCE BRIEF: Microfinance Microscope 2012; Impact of Financial Access in Bosnia and Herzegovina; Economic Opportunities and Financial Outcomes of Microfinance,” October 15, 2012, https://www.microcapital.org/microfinance-publication-round-up-microfinance-microscope-2012-impact-of-financial-access-in-bosnia-and-herzegovina-economic-opportunities-and-financial-outcomes-of-microfinance/

MicroCapital.org: “MICROCAPITAL BRIEF: Nigerian Microfinance Banks to Adopt International Financial Reporting Standard (IFRS) by March 2013,” April 2, 2012, https://www.microcapital.org/microcapital-brief-nigerian-microfinance-banks-to-adopt-international-financial-reporting-standard-ifrs-by-march-2013/

MicroCapital.org story: “MICROFINANCE PAPER WRAP-UP: Global Microscope on the Microfinance Business Environment 2011,” February 9, 2012, https://www.microcapital.org/microfinance-paper-wrap-up-global-microscope-on-the-microfinance-business-environment-2011/

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