2008 microfinance trends in asia

Liz Larson, Asia Regional Manager Microfinance Information eXchange (MIX) 2008 Microfinance Trends in Asia 2010 RBAP-MABS NATIONAL ROUNDTABLE CONFERENCE , June 2, 2010

Trends in Asia: structure of the presentation
Introduction to MIX: data platforms
Snapshot of the Sector: MIX 2008 Trends and Benchmarks
How do Philippine rural banks compare with their regional peers in microfinance
Areas of strength of rural banks over their regional counterparts
Areas of improvement that Philippine rural banks find from the MIX market reports

Limited ability for MFIs to benchmark performance for management diagnostic and business planning
New capital cannot connect with second tier MFIs
Donors / policy makers have limited picture of areas requiring public support
… because …
Lack of consistent, reliable data in public domain
Private data costly to aggregate on representative scale and coverage for any single actor
The Problem: Overcoming data dearth Lack of transparency stymies industry growth MISSION: To support the growth of the microfinance industry through a world-class public information platform

Our Contribution: A Catalyst for Growth Promotes sound investments Increases comfort level of investors Reduces cost of investing in microfinance Improves microfinance providers’ performance Strengthens market surveillance and public support MIX is a catalyst for growth because good Information …

Data Platforms
MicroBanking Bulletin is a global leading publication on the sector
Customized Performance Reports (CPR) are performance reports for MFIs.
MIX Market is an online information platform – a global clearinghouse for performance and outreach information
Regional and Country level analysis reports on microfinance performance and sector analysis

Working with Partners
MIX Partners (examples):
Latin America
ProDesarrollo
REDCAMIF (C. America)
COPEME (Peru)
RFR (Ecuador)
ASOFIN (Bolivia)
Africa
Ghamfin (Ghana)
AEMFI (Ethiopia)
Arab States
Sanabel
E. Europe / C. Asia
RMC (Russia)
AMFA (Azerbaijan)
Asia
PMN (Pakistan)
M-Cril (India)
MPCI/RBAP ( Philippines)
MICRA (East Asia)
CMF (Nepal)
RMDC (Nepal)
MISFA (Afghanistan)

Asia Coverage: MIX Market Growth

State of the Sector Overview: Where the borrowers are The bulk of the borrowers in Asia are in Bangladesh and India, whilst the bulk of the GLP is dominated by the same. Loan sizes vary significantly. Source: MIX Market, missing Vietnam, BRI

Growth across the world Growth slowed across the globe, but total growth in borrowers in Asia remained the same. Source: MIX Market trend data

State of the Sector: Growth Rates in Asia Borrowers grew steadily across the region in most countries while growth in loan portfolio was mixed. Source: MIX Market trend data

Financial Performance: Expense Ratios and Revenue – Asia, 2006-2008 Almost every market in Asia is profitable with a mixture of trends.

Financial Performance: ROA Trend Data – Asia, 2006-2008 Diverse range of ROA trends across the region; larger market, deposit-reliant SE Asian MFIs remain the most stable; India had largest increase Source: MIX Market

Global Funding Liabilities by Lender Type - Global, 2008 Source: MIX Funding Liability Database

Funding Liabilities by Lender Type – Asia, 2008 Source: MIX Funding Liability Database

Domestic and International Funding Liabilities, Asia 2008 Source: MIX Funding Liability Database

Philippines Rural Banks vs. NGOs

Depositors and GLP in the Philippines

Average Profit Margin, Operating Expense Ratio - 2008

Growth in borrowers (%) and depositors between rural banks globally and rural banks in Philippines

What areas of improvement can Philippine rural banks find from the MIX Market reports?
You can measure your MFI against Rural Banks in the Philippines
You can see if your expense ratios are higher or lower than your peers
You can see if your financing structure is similar or different than your peers
You can learn about the products of your peers – and your costs of delivering your products to your clients
You can find out if you are paying your staff more or less than your peers
And you can see how your performance is changing over time

How to participate to MM
Provide current data to MABS or MCPI
Audited financial statements
One page questionnaire (outreach, product, portfolio, background of organization)
Deadline: August 2009 – elarson@themix.org
All benchmarked institutions receive
Custom Performance Report
Trend Report (with 2-3 years data)
Recognition in MicroBanking Bulletin (MBB)
Inclusion in analytical reports
Profile on MIX Market site for global visibility

MICROFINANCE INFORMATION EXCHANGE, INC. The leading provider of business information and data services for the microfinance industry. Web: www.themix.org ; www.mixmarket.org Email: [email_address] Headquarters: 1901 Pennsylvania Ave., NW, Suite 307 Washington, D.C. 20006 USA Other Locations Lima, Peru ● Rabat, Morocco ● Hyderabad, India

2008 microfinance trends in asia

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